19 December 2012

India Ranks 8th among Countries with Black Money

India is among the world’s top 10 developing nations with a black money outflow of $1.6 billion ( 8,720 crore) in 2010, as per a report by Global Financial Integrity (GFI). The report said that the total outflow of black money from India since independence until 2010 was $232 billion, usually in the form of corruption, bribery and kickbacks. The growing value of illegal assets held by Indians during the same period of time is expected to be $487 billion, reported Chetan Chauhan for Hindustan Times.

The report by Washington-based GFI, Illicit Financial Flows from Developing Countries said in the post-reform period of 1991-2008, deregulation and liberalisation increased the outflow of illicit money from the Indian economy.

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

The report revealed that the illicit financial flow in 2010 from these countries was $858.8 billion, lower than the all-time high of $871.3 billion in 2008. China showed the maximum outflow of illicit money, while India ranked eighth.