The score of 40 means that India has been placed in the Red zone - the high corruption zone. Though India has improved the position by two points, but continues to remain in the same red-zone of corruption.
"The lower-ranked countries in our index are plagued by untrustworthy and badly functioning public institutions like the police and judiciary. Even where anti-corruption laws are on the books, in practice they're often skirted or ignored," the report said.
In terms of rankings, however, India has improved by three positions from 76 to 79 and has been rated lower than all its neighbours except Bhutan.
Transparency campaigners have been demanding for long that India strengthen its anti-graft laws and ensure their effective implementation.
The report deemed New Zealand and Denmark to be the least corrupt nations with a score of 90 and Somalia was rated as the most corrupt country.
To prepare the index, Transparency International rated 176 countries based on information provided by various institutions such as the World Bank and the World Economic Forum.
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