India is Growing... (in Corruption Index)

The past few days have not been good for a firm believer in the India growth story. Three instances of large scale corruption have come to light and that too, at about the same time. Already, Transparency International, the international watchdog for corruption has downgraded India in its corruption rankings. And going by the turn of events, it will not be surprising to see India slip further. However, are the country's politicians doing something about it?

Very little we believe! Their hands seemed to be tied by political compulsions. And in cases where they have taken action, the punishment has not been very severe to say the least. On the contrary, the ruling party is hell bent on undertaking a massive expansion in the welfare program, an activity that is notorious for its corruption levels.

India Inc. on the other hand seems to be emboldened by the recent admission by Ratan Tata that his conscience didn't allow him to bribe a minister in order to enter an industry. Others too have come out in the open and have admitted that corruption is indeed a part of the cost structure of doing business. As most of them point out and also does the Wall Street Journal, the creation of a truly independent and empowered anti-corruption agency may help stem the rot. But what remains to be seen is whether there will be any inclination at all towards establishing the same.