Is India poor?
Its a good question but when you look at the records of how much black money the corrupt and the rich have stashed away in Swiss banks, you realize that the amount of “dirty money” is more black money than the rest of the world combined!! The figure is $1.5 Trillion (~ 13% of world’s total $11.5 trillion).
And here is the sad part:
The USD 11.5 trillion of assets held offshore would generate a return of about USD 860 billion a year at a 7.5% rate of return, and a consequent tax loss of USD 250+ billion for sovereign nations, more than three times the OECD countries’ official development assistance to the entire world.
There is a reason why the tax system and law policing in India should be better! Despite being the country with the largest booty stashed in off shore accounts, India still has been growing substantially! Imagine if all this wealth could have been harnessed for the country’s use?
Surprisingly, India — still regarded as a poor country by many — has USD 1.5 trillion in Swiss banks, which is more black money than the rest of the world combined. This is thought to be unaccounted money earned in India by inappropriate means as otherwise any Indian citizen or corporation wishing to open a bank account abroad has to take permission from the Reserve Bank of India and records do not show any such permissions granted for deposits in Switzerland. A 2006 report of the Swiss Banking Association claims Indians are the biggest depositors of black money in banks located in Switzerland. Top five countries in terms of such deposits are:
India: USD 1,456 billion
Russia: USD 470 billion
United Kingdom: USD 390 billion
Ukraine: USD 100 billion
China: USD 96 billion
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