Fact Check: "India's court system costs the country at least 10% of its GDP annually."
What We Know
The claim that India's court system costs the country at least 10% of its GDP annually is not supported by credible evidence. In fact, the pendency of court cases in India has been shown to cost the economy more than 2% of GDP according to various reports (source-1). Furthermore, India spends approximately 0.1% of its GDP on the judiciary, which is significantly lower than the spending on other sectors like defense, which accounts for about 2% of GDP (source-2).
The backlog of cases in Indian courts is a pressing issue, with over 52 million cases pending as of 2025, and the government being the largest litigant in these cases (source-1). The inefficiency of the judicial system has been attributed to a lack of judges and resources, with only 21.03 judges per million population in India, compared to much higher ratios in countries like the United States and Europe (source-1).
Analysis
The assertion that judicial costs amount to 10% of GDP seems to be an exaggeration. The Institute for Economics and Peace reported that the inability of the Indian state to deliver timely justice could cost as much as 9% of GDP due to preventable violence and economic losses related to judicial delays (source-2). However, this figure does not directly equate to the operational costs of the judiciary itself.
Moreover, the actual expenditure on the judiciary is only about 0.08% to 0.1% of GDP (source-1, source-2). This indicates that the costs associated with the judiciary do not approach the 10% mark claimed.
The sources used in this analysis are credible, including government reports and academic studies. The World Justice Project and the Niti Aayog have also provided insights into the state of the Indian judiciary, further corroborating the figures mentioned (source-1).
Conclusion
The claim that India's court system costs the country at least 10% of its GDP annually is False. The actual costs associated with the judiciary are significantly lower, estimated at around 0.1% of GDP, while the broader economic impact of judicial inefficiencies may reach up to 9% of GDP due to indirect costs. However, these figures do not support the original claim regarding direct judicial costs.
Sources
- Pendency of court cases in India
- India spends 0.1% on the judiciary as against 2% of GDP on Defence
- How Much Did 11 Rich States Spend on the Justice Budget
- Judicial Budgets: From Financial Outlays to Time-bound
- INDIA JUSTICE REPORT
- 11 Richest States Allocate 4% Of Budget For Justice Delivery
- GDP And Our Judges Courts are intervening in economic
