Graft costing India 1.5% of GDP growth each year
Corruption, especially in high places, is eating up India’s gross domestic product (GDP) growth by at least 1.5% each year. This figure has been calculated in an internal report of the Planning Commission. Chetan Chauhan reports. Scandinavian solutionindia Updated: Nov 20, 2011 02:07 IST
Corruption, especially in high places, is eating up India’s gross domestic product (GDP) growth by at least 1.5% each year. This figure has been calculated in an internal report of the Planning Commission and points to similar concerns voiced by top business leaders of the country in the recent past.
"If we could have reduced corruption, we could have clocked GDP growth of anywhere between 8.5% and 10%," Infosys chairman emeritus NR Narayana Murthy had said, supporting Anna Hazare’s campaign.
Azim Premji, chairman of IT major Wipro, had said the same thing earlier this week. "If corruption levels in India were reduced to that in the Scandinavian countries, investment rate will increase annually by some 12 percentage points and GDP growth by almost 1.5% each year," the plan panel’s report said.
India’s Corruption Perception Index in 2009 was 3.4 whereas that of the Scandinavian countries — Denmark, Norway and Sweden — was 9.03. Even if India improves its corruption perception by 2.38 points, GDP growth will improve by 0.5 %.
That is achievable with countries such as North Korea, Cyprus and Zimbabwe improving their corruption index among 213 economies reported by Transparency International, the report said.
The study, done under former cabinet secretary BK Chaturvedi, now a panel member, has recommended deletion of article 311 of the Constitution, which provides protection to civil servants against dismissal.
It also wants ombudsmen at local levels for quick action against corrupt officials and special courts to decide cases of corruption within six months.
First Published: Nov 20, 2011 01:22 IST