Scoring 3.3, India stands at the 87th position, while its neighbour Pakistan ended up with the 143th rank with a score of 2.3.
China and Brazil, the other two major emerging economies, were ranked at 78th and 69th respectively, Transparency said.
Russia, meanwhile, slid down the global corruption league to joint 154th with Cambodia, Kenya and Laos. It was Russia's lowest ranking since the index began in 1995. Last year it was 146th.
"You cannot battle corruption with words and nice bits of paper," said Yelena Panfilova, head of the Russian branch of the watchdog group. "There has been no success ... the struggle with corruption has come to a dead end."
Corruption is a way of life for Russians, from small bribes paid to traffic police to multi-million dollar kickbacks for officials who hold sway over the $1.2 trillion economy.
The Index shows that nearly three quarters of the 178 countries in the index score below five, indicating a serious corruption problem.
Here then is a look at the top ten most corrupt countries in the world.
Image: The historical India Gate at New Delhi.
Image courtesy: Wikimedia Commons