Corruption in India is an issue that has adversely affected Indian Economy .There was a study conducted in 2005 by Transparency International shows that more than 62% of Indians had good experience of paying bribes or influence peddling to get jobs done in public offices successfully, Again there was a study conducted in 2008, Transparency International reports that about 40% of Indians had firsthand experience of paying bribes or using influence to get their jobs done in public offices.
In 2015, India was ranked 76thout of 168 countries in Transparency International’s Corruption Perceptions index compared to Neighbors , Bhutan( 27th),Bangladesh (139th)Myanmar(156th) China(83rd) Nepal (130th) Pakistan(117th) & SriLanka(83rd).The largest contributors to the corruption are entitlement programmes & social spending schemes enacted by Indian Government. Examples—Mahatma Gandhi National Rural Employment Guarantee Act & National Rural Health Mission. Other corruption sources includes India’s Trucking Industry which is forced to pay billions of rupees in bribes annually to various Regulatory bodies & Police stops on its Interstate highway.
The media has also played a major role in exposing practices stashing trillions of dollars in Swiss Banks. Swiss authorities categorically denied these allegations now & then, which was now proven in 2015-2016.Some of the media houses are also corrupt owned by corrupt politicians & Industrialists who also play a major role in all these scams. These media houses give misleading information for mudslinging for their businesses & political opponents.
Causes of Corruption in India:
It includes various Regulations, Complicated Tax structure & licensing systems, Various Governmental Departments, &Opaque Bureaucracy & discretionary powers, monopoly of governmental Institutions on certain goods & services delivery, & lack of Transparent Law structure &Processes. There is significant variation in the level of corruption & Governments efforts to reduce it in India.
What is Black Money?
Black Money refers to that is not or legitimately the property of owner, A White paper on black Money by the Government of India suggests two possible sources of black money in India. The first includes activities which are not permitted by law, such as crime, drug, trade& terrorism, & corruption all of which are illegal in India. The Second one includes the wealth accumulated by legally but failure to declare those incomes&pay taxes. Some of this Black Money also ends up in illicit financial flows across international borders, such as deposits in tax haven countries.
Indian Black Money in Switzerland
India was ranked 37th by money held its citizens in Swiss banks in 2004, but then improved its ranking by slipping to 61st position in 2015. & further improved to 75th position in2016. According to 2010 The Hindu article, unofficial estimates indicate that Indians had over US$1,456billion in black money stored in Swiss banks. While some of the reports of 2006 showed that India has more black money than the rest of the world. Now& there were rumors which were cleared by James Nason of Swiss Bankers Association in an interview about alleged black money from India. The figures were rapidly picked up by Indian media and in Indian opposition circles & they were circulated as truth. However this story was complete fabricated one. The Swiss Bankers Association never published such a report. We find in a separate study of Global Financial Integrity concludes media reports circulating in India that Indian nationals held around US$1.4 Trillion in illicit external assets which are widely off the mark. This concludes by saying that corruption, bribery, &kickbacks criminal activities & Trade mis-pricing & efforts to shelter wealth by Indians from India’s Tax authorities.
Domestic Black Money
Indian companies are reportedly misusing public Trust for Money Laundering; India has no centralized repository—like the registrar of companies for corporates – of information on public trusts
Public servants have very wide discretionary powers offering the opportunity to extort undue payments from companies& ordinary citizens. The awarding of Public contracts is highly corrupt, especially at the State level. Scandals involving high level politicians have highlighted the payment of kickbacks in the Health care, IT industry&Military sectors. For more than 17 years we find under UPA led Dr. Manmohan Singh the deterioration of Efficiency of Government, Protection of property rights, ethics & corruption as well and also we found that undue influence of Judicial decisions has resulted in a more difficult business environment.
Another classic example of corruption– The controversy surrounding the alleged land dealings of Robert Vadra, son-in-law of Congress President Sonia Gandhi, resurfaced last week with a series of investigative reports, still the case goes on Dhingra reports which was submitted in the month of 31st August this year, the state government about the controversial land deals in Haryana allegedly involving Robert Vadra.It clearly stated there were irregularities found in the grant of land licenses in the area, for developing commercial colonies by Department of Town & Country planning to some entities in Sector 83, Gurgaon, including Mutation of land deal between a firm by M/S Skylight Hospitality owned by Robert Vadra & realty major DLF.
Corruption in Judiciary –
According to transparency international in India is attributable to factors such as delays in the disposal of cases, shortages of judges & Complex procedures, all of which are exacerbated by a preponderance of new laws. Over the years there have been allegations of corruption
Corruption in Armed Forces—the Indian Armed forces have witnessed corruption involving senior Armed Forces officers from the Indian Army, Indian Navy, & Indian Air Force. A number of scandals in the 2000-2010 periods damaged the military’s reputation; such scandals included skimming of armed forces money, & faking combat missions.
Factors contributing to corruption in India—in 2011 report on Corruption in India, one of the worlds largest audit & compliance firms KPMG note several causes that encourage corruption in India. The reports suggest high taxes & excessive regulation bureaucracy as a major cause. India has high Marginal Tax rates & numerous regulatory bodies with the power to stop any citizen or business from going about their daily affairs. In cases of high Taxes, paying off the corrupt official is cheaper than the Tax, this is one of the major reasons for corruption in India, and in real estate Industry the high capital gains tax in India encourages Corruption in India.Objective standards & Transparent processes are missing, opinion driven regulators are opaque/hidden process are present, also encourages corruption in India.
Impact of Corruption –
A Study by professionals like Ernst &Young, KPMG high level corruption & scams are now threatening to derail the country’s Economy & credibility & also its boom.
Economic Loss—Corruption further leads to bureaucratic delay & inefficiency as corrupted bureaucrats may introduce red tape in order to extort more bribes. Marginal product rate is lowered, Investment rate gets lowered. Additionally, corruption results in lower economic growth for a given level of economy.
Lower Corruption, Higher Growth rates- If corruption levels in India were reduced to levels in developed economies such as UK, Singapore India’s GDP growth rate could increase at a higher rate annually.
C.K.Prahlad estimates the lost opportunity caused by corruption, in terms of investment, Growth & jobs for India is over US$50 billion a year.
Our PM Narendra Modi, since 2014, has been working tirelessly for clean up initiatives for a Transformed &Vibrant Economy starting from Swachch Bharat Abhiyaan to Surgical strike on Black Money in the month of November 2016. On November 8th 2016, He conducted a surgical strike on Black Money by declaring 500 & 1000 Notes as no more legal tender, this created ripples in Lutynes Delhi & across border where these fakes notes of the above 2 denominations were used for terror funding. All these Pseudo seculars journalists made a huge hue & cry for nothing as they were caught in that vicious circle too without any notification.
PM Modi has reiterated that this “suffering is only for 50 days, once there is cleanliness (Swachchta) not even a mosquito can fly said our PM, after laying the foundation stone of Mopa Greenfield Airport Project in Goa.After demonetizing high value notes to curb black money, PMModi on Sunday said he has lot more projects in mind to get rid of corruption in this country, & was ready to face the make in India consequences as Forces are up against me with this loot of 70yrs being in trouble. This is not an End, I have more projects in my mind to make India free from Corruption, & urge people to cooperate with me & help me for 50 days. I will give you the India you desired”.
The next move against corruption will be to take action against Benami Property. The major step is to eradicate corruption &black money—If any money that was looted India,& has left India in its shores, it is our duty to find out ,reiterated PM Modi.He also further stated that he accepts the challenge,
“I know that force is up against me, they may even ruin me, let me not live because of their loot of 70years is in trouble, but iam prepared”. Thus we find a leader whose intentions are clear & have conviction to fight India against corruption & Black Money.I would like to quote swami Vivekananda ’swords “Arise, Awake and Stop not, till the Goal is reached. Though we might face some inconveniences here & there but friends our future will be secured and free of disease called corruption.
Dr Sukanya Iyey