Home / Issues / Corruption / 75% of India’s $500 billion Black Money is held outside the country

75% of India’s $500 billion Black Money is held outside the country

Estimated Reading Time 3 minutes

India is rather high in the black money hoarding list.

India is among the top 10 developing countries in the world with a black money outflow of $1.6 billion ( Rs.8,720 crore) in 2010, a report by Global Financial Integrity (GFI) said. The report, to be released on Tuesday, said the total outflow of black money from India since independence until 2010 was $232 billion, generally in the form of corruption, bribery and kickbacks. The cumulative value of illicit assets held by Indians during the same period is estimated to be $487 billion.

A whopping 75% of the black money is however held outside the country and doesn’t benefit the Indian economy in any way.

“Almost three-quarters of the illicit assets comprising India’s underground economy — which has been estimated to account for 50% of India’s GDP (around $640 billion in 2008) — ends up outside of the country,” the report’s author and former economist with IMF Dev Kar, said

That means Indian economy should legitimately be twice the size that it is today!

Interestingly, when we look at China, the situation is even worse there.  India is nowhere near it.  Not that we are competing or should compete.  But it raises a useful question about the longevity of the growth economy that China is today.  No economy can survive with almost $3 trillion in Black money, most of it outside the country!

Country wise Black money in last decade.  Image courtesy: HT
Country wise Black money in last decade. Image courtesy: HT


Chart Courtesy – HT



Enhanced by Zemanta

Get Drishtikone's Profound Fix

Subscribe to get our latest content by email.

Powered by ConvertKit
A heartfelt NAMASTE! We hope you are enjoying our direct, honest, well-researched posts on topics of immense importance for India and the world! We don't mince our words and don't write general wishy-washy stuff. We go to the heart of the issue and look it in the EYE! Write to me at desh.kapoor@gmail.com and let me know how we can improve!

About Desh Kapoor

The panache of a writer is proven by the creative pen he uses to transform the most mundane topic into a thrilling story. Desh - the author, critic and analyst uses the power of his pen to create thought-provoking pieces from ordinary topics of discussion. He writes on myriad interesting themes. Read the articles to know more about his views and "drishtikone".

Check Also

Hot Pursuit against Pakistan

Hot Pursuit: Indian Commandos kill and injure 200 in Pak Occupied Kashmir as India Hits Back!

shares Estimated Reading Time 4 minutesBarely a few months into power Modi Government faced a …

Leave a Reply

Be the First to Comment!

Notify of