Broadly speaking, corruption in India can be divided into two categories. In the first, it is the grand larceny where those in power pocket hundreds of millions in kickbacks in public procurement, and contracting. The second category consists of what might be called petty corruption where the common men pay even for the public services to which they are fully entitled. All extract money from the citizens on one pretext or another.

There is ample evidence to show that corruption has slowed down economic progress and poverty alleviation initiatives in India. It has adversely affected the national security system, too. The most affected people are the poorest and the most vulnerable groups. These groups are denied their rightful entitlements, as they cannot pay a bribe.

Good governance is essential for realizing the objectives of our constitution and alleviating the existing levels of poverty. One of the biggest hurdles to good governance is pervasive and rampant corruption. There is a strong correlation between corruption and poverty. Though corruption affects adversely everybody but the people who are the most affected by it are the poorest and the most vulnerable. These people are denied their basic rights and entitlements. For example, a common man has to pay bribe to access basic health services, educational facilities, ration under PDS, rightful acquisition of their land, etc. A large number of people in India fall under this category. Corruption is a deep rooted problem in India and has become a part of Indian psychology. Transparency International’s Corruption Perception Index 2006 places India at the 70th position among 163 countries.

There are a number of reasons for corruption's prevalence in India. A certain section of civil society is forced to pay bribes to get access to their basic rights and entitlements since large a large section of civil society is unaware of their rights and entitlements. This develops a mind set among government officials that has a very negative impact on the poorest who can not afford to pay a bribe and hence they are denied access to their basic rights and entitlements. There is lack of transparency and accountability in government functioning. Moreover, inefficient administrative systems aggravate the situation. There is also lack of strong political will to fight corruption in India.

Thus, there is need for mass awareness among the grass root citizens about their rights and entitlements along with change in the attitude of people who give bribe and government officials who take bribe. There is also a need for increased transparency and strong accountability in government functioning.