How Much Is Black – Financial Express – 20-Dec-2014

December 26, 2014 - Uncategorized

At a time when the government has speeded up its efforts to unearth black money stashed abroad, Global Financial Integrity has ranked India fourth globally in illicit wealth outflows. It estimated that between 2003 and 2012, about $440 billion (nearly R28 lakh crore) flew out of India because of import and export misinvoicing, and other regulatory issues. Russia tops the list with $1,252 billion, followed by China at $974 billion and Mexico at $514 billion.


Data from the Washington-based think tank show that illicit fund outflows from India account for nearly 10% of a record $991 billion illegal capital that moved out of all developing and emerging nations in 2012 to facilitate crime, corruption and tax evasion.


The government’s Special Investigation Team, set up to probe a list of over 600 people with money in HSBC, Geneva, among other cases, in its second report given to the Supreme Court has revealed that those on the HSBC list held R4,479 crore in offshore accounts. It also said 201 of the 628 names on the HSBC list were either non-residents or non-traceable, while the cases of the remaining 427 persons were actionable. In 2012, a study done by the National Institute of Financial Management found that black economy in India fell to around 15% of GDP in FY11 from 30% in the early 1970s.


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