Contrary to popular perception that corruption was on the rise in India, an international organisation on Tuesday said it had in fact decreased in the past one year and placed the country 88th among 159 nations, down by two ranks.

The Transparency International's Corruption Perception Index for 2004 had placed India 90th among 146 countries.  India scored 2.9 in 2005 on a 10 to 0 scale of the index indicating the cleanest score and 0 the most corrupt.

Last year India had scored 2.8. The survey is not just limited to estimating monetary value of petty corruption but also ranking public services and states. The study looks into systematic aspects of corruption in public services, Transparency International India's working chairman S D Sharma said in New Delhi, while releasing the report.

Among India's neighbouring countries, Berlin-based TI placed China and Sri Lanka at 78th position ranking it least corrupt than India with a score of 3.2 while Afghanistan and Nepal have been jointly placed at 117th with a score of 2.5, Pakistan 144th with a score of 2.1 and Myanmar 155th (1.8).

Iceland is the least corrupt country with a score of 9.7 while Bangladesh and Chad have jointly been described as the most corrupt nations in the world ranking 158th (1.7).

The United Kingdom has been placed 11th jointly with Netherland (8.6) while United States has been placed at 17th with a score of 7.6 in the index.

As per the composite ranking of states in petty corruption cases involving common citizens and in the 11 public services, Kerala stands as the least corrupt state in India while Bihar tops the list.

Jammu and Kashmir has been ranked the second most corrupt state of the country while Madhya Pradesh, Karnataka, Rajasthan and Assam are also badly afflicted with the problem. Delhi stands 10th in the list.

The study said all services in Bihar are ranked as the most corrupt in the country. Except hospitals, all services in Jammu and Kashmir are also corrupt while in Madhya Pradesh, municipal services are ranked relatively better.

In Karnataka services like income tax, judiciary, municipalities figure among the top corrupt services in the country while in Rajasthan judiciary (lower) ranks among the less corrupt services.

In Assam, police and electricity figure as the most corrupt services in the country. In Himachal Pradesh most services are ranked as relatively less corrupt. Gujarat is ranked as less corrupt in comparison to other states.

In Tamil Nadu, schools, hospitals, income tax and municipalities rank among the most corrupt departments in the country while in West Bengal water supply service is ranked as the most corrupt service in the country.