India Can’t End Corruption, But It Can End Its Celebration 

India’s GST collections crossing ₹2-trillion mark is more than a fiscal milestone, it signals the deepening of formalisation of an economy long marked by informality. The very idea of taxation, once viewed as burdensome, has quietly evolved into a kind of credential, an entry ticket into a formal, creditworthy, and scalable economy. This shift deserves recognition.

And yet, for every business now diligently using invoices, many others still offer cash discounts with no bills, or issue invoices without a GST number. The language of compliance may have changed, but not necessarily the behaviour. In truth, much of the old economy hasn’t vanished; it has simply found newer disguises. 

While formalisation has marched forward, corruption has not retreated, it has merely mutated. The so-called “black economy”, once referred to with unvarnished candour, is now couched in gentler terminology as the “informal sector.” And corruption, historically pinned on public sector inefficiencies, now hides in plain sight within the private sector. 

Procurement, appointments, and project approvals are often influenced not by merit but by inducement. The mechanisms are more sophisticated: inflated contracts, silent boardrooms, conflicts of interest dressed up as vendor ecosystems. When the payoffs are routed through sweat equity, managed by sophisticated lawyers and accountants, they often pass muster as legitimate transactions. 

Increasingly, a culture of normalised inducement has emerged—echoed in cinema, like the phrase “wetting the beak” from The Godfather. From officials to boardrooms, the exchange of favours—whether in cash, kind, or deferred obligations—has become embedded in how “business is done.” 

Even corporate compliance frameworks, once designed to ensure transparency, are now weaponised for obfuscation. Complex ownership structures, proxy intermediaries, and family networks are used not just to stay within legal limits, but to sanitise indulgence. 

Visible Deterrents
If targeting the source of corruption remains politically and institutionally elusive, perhaps it is time to focus more directly on its visible outcomes. Curtailing the easy conversion of illicit income into public display could shift the risk-reward calculation. 

Start with cash. Prohibit cash payments for luxury services—business-class air travel, premium hotel stays, high-end electronics, jewellery, or any purchase beyond a specified threshold. This will not eliminate black money, but it will erode its gratification. To earn without flaunting is far less appealing to the corrupt.

India should also consider mandating that all hotels rated three stars and above operate fully cashless. It is in such establishments that ill-gotten wealth often finds its most routine and opulent expression—not just in food or drink, but in everything from discreet meetings to unaccounted event hosting. Even countries with less advanced fintech ecosystems—like much of Europe—have adopted near-cashless norms for precisely this reason: visibility limits misuse.

Italy offers a compelling precedent. Over two decades, it reduced its legal ceiling for cash transactions from €12,500 to just €1,000. The principle was clear: curb anonymity, force transactions into traceable channels, and alter social behaviour. Despite early concerns about inconvenience, card usage surged, VAT collections improved, and a subtle yet significant cultural shift occurred. Black money may not have vanished—but its ease of enjoyment was certainly disrupted.

Here in India, the experience of global exporters is instructive. Many Indian firms that thrive abroad—where bribery is criminalised and compliance non-negotiable—struggle at home due to their refusal to engage in under-the-table dealings. Their products are world-class; their principles are punished only locally. The fault lies not in the entrepreneur, but in the ecosystem. 

Controlling the source of corruption may be ideal, but perhaps we must begin by suffocating its most seductive expression: consumption.

We must also reflect on what it reveals about our civic morality when public leaders—even at the most local levels—routinely display levels of disposable affluence that bear no correlation to declared income. Lavish weddings, convoys of SUVs, extravagant gifting—all too often rationalised as “gifts from well-wishers”—are passed off as acceptable. Since no one is convicted, it is not corruption.  

Also consider the ostentatious public celebrations around the birthday of a local political figure—entire neighbourhoods plastered with posters, loudspeakers blaring praises, flower showers, LED hoardings, and public feasts. Who funds this? Where is it accounted for? If we don’t have corruption, then what exactly is there to solve?

Social Tolerance 
It speaks to the broader societal tolerance for the quiet subversion of rules, so long as the performance of legality is maintained. When money flows freely but accountability is nowhere to be found, we normalise the abnormal and excuse the indefensible. 

We must also be cautious not to drift into fiscal paternalism. When the state begins to dictate how and when individuals may spend their legally acquired money—even on luxury—it sets a precedent that must be carefully guarded. Today, the target is corruption; tomorrow, it could be autonomy itself.

Above all, we must not confuse managing the symptoms of corruption with curing its systemic roots. The true drivers of corruption lie in opaque procurement rules, unchecked regulatory discretion, political financing opacity, and lack of institutional accountability. Fixing these will take time—and political courage.

But in the meantime, we can attack the rewards that make corruption so attractive. If we cannot yet eliminate it, we can at least strip it of social prestige. Corruption endures not just because it is lucrative, but because it is admired. That is where reform must begin.

For a country that aspires to be rule-based, merit-led, and globally credible, the first step must be cultural. Dismantling the architecture of admiration around illegitimate wealth would be a meaningful place to start. 

Make corruption boring. Make it shameful. Most of all, stop applauding it.