Black Money in India: Is India a poor country? Well, if you go through the statistics, you would know that India has reserves in the form of black money that is about 13 times more than the country’s current total debt. And thus, by any chance, if all this black money can be converted into white money, the country and its people wouldn’t have to shed sweat and blood, and can become the next top notch super power, overnight!
According to the reports of the Swiss Banking Association, India has black money reserves of $1, 456 billion in the Swiss Bank, which surpasses the most corrupt figures in any other country like Russia, UK, Ukraine and China. About $719 billion is also lying with the HSBC’s Geneva branch. Moreover, these are just raw figures. Usually, companies and corrupt people intentionally fiddle with the accounts to show lower figures.
Another interesting figure from the Global Financial Integrity (GFI) Research, 2014 says that India contributes approximately above 10% in trafficking illicit outflows. About $99 billion dollars are being moved out of India for corruption, crime and tax evasion and therefore indirectly hampering the Indian economy at a macro level.
To be true enough, India’s black money in foreign banks has been just 10% of the total amount. Do you believe if we say that 90% of this black money is circulating and treasured in India itself? Yes, our corrupt politicians and corrupt people are playing brilliantly with people’s hard earned money. Moreover, the most shocking fact is that those who claim that ‘we will bring black money back to India’ are fully aware of this fact, yet they are fooling the common man by saying that all our black money resides in Swiss banks and we are trying our level best to bring it back. Investigations and reports on the other hand, reveal the true facts and say that the major chunk of the black money is residing within India itself.
So who holds the black money? Quite obviously, about 50% of the population are agriculturists and middle-income groups do not even earn more than 2.5 lakhs per annum. So, the major people who are involved in these practices are corrupt politicians, corrupt bureaucrats, corrupt industrialists, business class, corrupt police and corrupt government and private officials.
So why is the government just saying, and not actually uprooting? To stay in power after five years, the government needs votes, and for votes and rallies, it needs money! And where is this money coming from? Obviously, the black money reserves!
Recent updates by the Modi government over the black money issue –The Modi government has now asked UN’s help for about $273 crore asset recovery. More than anything else, the ‘Black Money Law’ or ‘Black Money Act 2015’, with effect from 1st October, is the most drastic step what any government has taken so far, towards the issue. According to the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, an assessee would be charged from April 2016 for his undisclosed foreign income and assets to the Income Tax department. For the full details of the Act and its provisions click here.
Our country’s 50% GDP is sourced at the black money in india (that is about 61 lakh crore!). Just imagine what we can do with this 61 lakh wandering free money. We can create more infrastructure, schools, hospitals, facilities, transport, investment and everything else and achieve all those goals which a nation and its countrymen are aspiring for every day.