Question No 47 INTRODUCTION INDIAN ECONOMY The Economy of India is the tenth largest in the world by nominal GDP and the fourth largest by purchasing power parity (PPP). The country's per capita GDP (PPP) per capita is $3,608 (IMF, 129th) in 2010. Following strong economic reforms from the post-independence socialist economy, the country's economic growth progressed at a rapid pace, as free market principles were initiated in 1991 for international competition and foreign investment.Despite fast economic growth India continues to face massive income inequalities, high unemployment and malnutrition.

CORRUPTION The term “corruption” includes a range of ways in which public officials can misuse theiroffices for private gain or can illegally benefit their political allies. Efforts to control corruption need to include not only political and bureaucratic officials inside government but also those in the private sector who pay bribes and seek illicit favors. Thus,corruption includes both the payment and the receipt of bribes, whether or not the services provided are themselves illegal. It also includes actions by officials that do not involve bribery such as fraud and the misuse of public funds, facilities, and goods and services for private benefit. Conflict-of-interest is a separate, related problem that needs to be defined and limited. Political party financing and the financing of political campaign are an important, contested area where laws need to be clear about where the line is drawn between legal and illegal contributions. In the interest of brevity, I will not deal further with either conflicts of interest or political financing, but they are issues that the drafting committee may want to consider as well.

DISCUSSION Now that India is playing an ever larger role in the world economy, the issue of corruption, in both the private and public sectors, is coming into sharper focus. Two scenarios are possible: As India's multinational corporations develop both economic and political muscle, they may act as a broom, sweeping corruption from the economic sphere. On the other hand, entrenched practices may prove the stronger force, and corruption could end up being a significant brake on India's economic rise. Corruption in the public sector -- the misuse of public office for private gain -- is often viewed as exacerbating conditions of poverty (low income, poor health and education status, vulnerability to shocks and other characteristics) in countries already struggling with the strains of economic growth and democratic transition. Alternatively, countries experiencing chronic poverty are seen as natural breeding grounds for systemic corruption due to social and income inequalities and perverse economic incentives. Corruption Exacerbates Income Inequality Reduced Economic Growth Rates Increase Poverty Corruption Degrades Governance Reduced Public Trust in Government Increases Vulnerability of the Poor

Conclusion- Corruption in India is one of the major setbacks for developing India. The corruption flourishes from top to bottom level and as a result of this the poor innocent people are becoming victim of this corruption. Except very few people who are living with principle, remaining all are indulging in corruption in one or other way around by misusing their powers or positions. In top level, the corruption is in the form of scams and in the bottom level the corruption is in the form of bribes. Though the corruption at the bottom level is low but it accumulates as bigger as a scam because at the bottom level crores of people indulging in corruption. For example: at the bottom level if there are ten crores people forbearing corruption each by Rs 1000 it accumulates into 100000000 X 1000 = 100000000000 that is a huge amount of ten thousand crores rupees which is much higher than a scam. The induced amount is mere thousand rupees but the consolidated amount is much higher. So, the bottom level corruption in India is also a major issue to be resolved. so in theend what we conclude is that Corruption is an intractable problem. It is like diabetes, can only be controlled, but not totally eliminated. It may not be possible to root out corruption completely at all levels but it is possible to contain it within tolerable limits. Honest and dedicated persons in public life, control over electoral expenses could be the most important prescriptions to combat corruption. Corruption has a corrosive impact on our economy. It worsens our image in international market and leads to loss of overseas opportunities. Corruption is a global problem that all countries of the world have to confront, solutions, however, can only be home grown. We have tolerated corruption for so long. The time has now come to root it out from its roots.In our country a reformer named anna hazare has taken brave steps to curb corruption intended towards responsiveness, accountability and transparency are a must for a clean system.he has mostly cocentrated on Bureaucracy, the backbone of good governance, should be made more citizen friendly, accountable, ethical and transparent.