Not everyone in India corrupt; regulators need to be careful: P Chidambaram

NEW DELHI: Finance Minister P Chidambaram has downplayed the perceived level of corruption in India by saying it is widespread even in the West.

"A few days ago, there was a report which said that business in Europe is estimated to spend $162 billion every year bribing officials, politicians, government just to do business," Chidambaram said at a function to mark 50 years of the Central Vigilance Commission. "So I think this belief that India is the most corrupt nation and that Indians are most corrupt in the world, I think it is completely wrong."

India ranked 94th among 177 countries in Transparency International's Corruption Perceptions Index in 2013. A raft of bribery scandals over the last few years has reinforced the perception that business dealings in India are seldom fair. The scandals, along with high food and fuel prices and the slump in economic growth, have also hit the UPA government's popularity.

Chidambaram said that while instances of corruption can be found in every nation, the scale of corruption in India has gone up as the size of the economic pie has grown and there are more business opportunities, more stakeholders and more competition.

"I am not condoning corruption...to believe that everyone is corrupt... that everything you do is corrupt, that is the worst kind of attitude we adopt. Self flagellation is what I protest against...I would earnestly appeal to you to believe that India is not the most corrupt country," Chidambaram said, adding that there are problems of corruption and the nation needs to deal with them.

Earlier in his address, the minister said that regulators should intervene only in cases of gross violations by companies or when there are clear cases of criminality, so as to not get over burdened.

Pointing out that the new companies law aims to ensure transparency, better disclosures and better accountability, Chidambaram said, "A regulator or an armed regulator must intervene and I urge that they do so only on the basis of gross violation or gross excesses, or if there is clear case of criminality. We must keep faith in self regulation."