Black Money in India
Black Money in India ( Global Financial Integrity Report 2010)
1. India is losing nearly Rs.240 crore every 24 hours, on average, in illegal financial flows out of the country. India’s aggregate illicit flows are more than twice the current external debt of US $230 billion.
2. The nation lost $213 billion (roughly Rs.9.7 lakh crore) in illegal capital flight between 1948 and 2008. These illicit financial flows were generally the product of: tax evasion, corruption, bribery and kickbacks, and criminal activities.
3. Over $125 billion (Rs.5.7 lakh crore) of that was lost in just this decade between 2000-2008.In just five years from 2004-08 alone, the country lost roughly Rs.4.3 lakh crore to such outflows.
4. Had India managed to avoid this staggering loss of capital, the country could have paid off its outstanding external debt of $230.6 billion (as of end-2008) and have another half left over for poverty alleviation and economic development.
5. Total capital flight represents approximately 16.6 per cent of India's GDP as of year-end 2008.
6. The total value of (such) illicit assets held abroad represents about 72 per cent of the size of India's underground economy which has been estimated at 50 per cent of India's GDP (or about $640 billion at end-2008) by several researchers. This implies that only about 28 per cent of illicit assets of India's underground economy are held domestically.
7. From 1948 through 2008 the Indian private sector shifted away from deposits into developed country banks and moved more of its money into offshore financial centers (OFCs). The share of OFC deposits increased from 36.4 percent in 1995 to 54.2 percent in 2009.
8. Some 68 percent of India’s aggregate illicit capital loss occurred after India’s economic reforms in 1991, indicating that deregulation and trade liberalization actually contributed to/accelerated the transfer of illicit money abroad.High net-worth individuals and private companies were found to be the primary drivers of illicit flows out of India's private sector.
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