BLACK ECONOMY IN INDIA

BY,Parsi.Pruthvi (09MBI102)

INTRODUCTION….

The black market (sometimes known as underground or black economy) is trade, goods and services that are not part of the official economy of a country; this may be legal activities where taxes are not paid, or illegal activities, such as drug dealing and piracy

Also the black money is included in this black economy in which INDIA tops according to the statistics.

According to the eminent economists, the black economy rose from a mere 3% in mid 50’s to 50% today.

The dimensions of this growth of corruption and generation of a black income in India, are indeed, mind-boggling.

Some of the components of the parallel economy are numerous. Tax-evasion, Smuggling, Bribe-Taking, Foreign-currency racketeering.

In these black markets as we know the goods are priced low and not many are guaranteed.

BLACK MONEY….

Almost every INDIAN knows that the government works on corruption and without money no work will be done correctly.

This is the main reason behind the accumulation of black money by the public representatives.

If go into the deeper statistics of Indian black money which has proof it looks like this:

Year Black money

1990-2000 4.1lak crores

2006-2007 9.6lak crores

Present 15lak crores

The shown above statistics are the black money which is in Switzerland.

This way Indian black money are stored in almost 40 other countries.

Recent survey shows that as much as 50lak crores black money crossed the borders of India in last 5 years.

The ACB has as many as 1758 cases of illegal property earnings in pending.

In this 1758 cases, the revenue department tops the list with 466 cases.

The ACB are awaiting the permission for raid from the higher authorities.

A recent survey concludes that Indians have a total black money of around 1.5 trillion dollars.

The main contributors for achieving this feat are the politicians, some selfish business men, other public representatives and etc…

Some surveys show that the black money which went out of India in last 2 years is as much as 13 times of India’s debts.

If the total black money is brought back to India then we can do many wonders such as:- we can clear India’s debt in one go. we can clear the poor farmers of their debts. world class roads can be laid all over India

We can get relief from the power shortage

We can see that every house in the country with current.

We can have water supply for all the rural areas

We can construct planned houses for 10 crore people

We can distribute 4 crore to 6 lakh villages for their development

OTHER FORMS OF BLACK ECONOMY… As told in the previous slides the black

economy is not just black money it is illegal business also.

The business such as drug dealings, prostitution, piracy…etc.

The annual income of these business are in the next slide.

Largest black marketsEstimated annualmarket value(Billion USD)

Total 1,100 or 1,400

Marijuana 142

Prostitution 108

Counterfeit technology products

100

Counterfeit pharmaceutical drugs

75

Prescription drugs 73

Cocaine 70

Opium and heroin 65

Web Video piracy 60

Software piracy 53

Cigarette smuggling 50

The money statistics shown in the previous slide doesn’t have any tax payments .

In these types of markets or business India tops the list again with Russia behind us with not even half of India’s.

This way we can say that India as developed country or a super power.

CONCLUSION…. In a book written by an Indian Mr.Arun

Kumar, said that the black money is around 40% of the Indian GDP.

The Indian GDP is around Rs 61,64,000 crore that means the black money is around Rs 25,00,000 crore.

If the black money is declared legal and shown in the books of accounts then the 30% of it will be taken as tax so as much as Rs 7,50,000 crore will come as revenue.

That will more than the total tax collection for the year 2009-10 which stands at Rs 6,41,000 crore.

But it is not legal so none is going to declare it as legal because they will be behind bars.

If it has to happen this should be another movie.

Program done by tv9. Wikipedia. Research done by Mr. Arun Kumar. EPW weekly.