Most of the corruption done by people in India are driven ultimately by politicians (via bureaucrats). These politicians need the money to fund their election which is about giving it to the voters (yes, money is transferred to the illiterate folks during elections). Without money it is impossible to get elected to even a small position. So it indirectly hinges on the illiteracy levels. If people are educated enough to earn their own living without going for freebies and money which again is a Government budget and policy matter which is controlled by politicians. It is a vicious cycle.