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The Political and Economic Risk Consultancy Ltd rated India at 8.67 on a scale of zero to 10 with the high end being the worst case of corruption scenario and ahead of the Philippines (8.9 points), Indonesia (9.25 points) and Cambodia (9.27 points).
Among the 16 countries reviewed in its latest report, Thailand was rated at 11 with a scale of 7.55, followed by China (7.93) and Vietnam (8.3).
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In India, according to the report, civil and other local-level political leaders were found more corrupt than the national-level political leaders, with the former given a score of 9.25 and the latter slightly better at 8.97.
Indian civil servants at the city level too were rated at 8.18, worst than the civil servants at the national level (7.76).
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The government has been wracked by a series of scandals involving the sale of telecom licenses, preparations for the Commonwealth Games, a land scam involving high level military officers, and improper property loans made by state-owned financial institutions, it said.
Though investigations were under way to be followed by court trials, Indians were still questioning whether or not the prime minister has the political muscle to fight graft and whether the actions now being taken were more for show than proof that the government was really cracking down on business practices that were common but corrupt, it said.
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"This point is underscored by a recent WikiLeaks report that the ruling Congress Party paid off parliamentarians back in 2008 to pass the US-India civil nuclear deal," it said.