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1. BLACK
ECONOMY
PREPARED BY:
SATYAPRAKASH MEENA

2. What is black economy ?
A hidden sector of the economy where private cash
transactions go unreported.
Trades, goods and services that are not part of
official economy.
Black money is the currency of black economy .

3. Aa
 “ An Indian is affected at every step by the black economy. The
education of a child, a visit to a doctor, policeman who extort
money…..electricity or water departments all demands black
economy”
 Most of the black economy is on the hand of top 3% population so
that the disparity (between these people and the bottom 40 per
cent) is considerably higher (five times) than what the white
economy data suggests.
 Size of the black economy was 50 percent in 2012-13, that implies an
additional GDP due to the black economy of 50 per cent in that year.

4. Criminals steal goods and sell them in mark
They do not have to pay for production cost and taxes
If product is difficult to acquire or produc
legally.
E.g.: Drugs, weapons, bombs etc.

5. CRIME:- trafficking, smuggling, , illegal drugs and prostitution,
piracy
CORRUOPTION
BUSINESS

7. Largest black markets
Estimated annual
market value
(Billion USD)[44]
Total 1,829
Counterfeit pharmaceutical drugs 200
Prostitution 187
Counterfeit electronics 169
Marijuana 142
Cocaine 85
Prescription drugs 73
Opium and heroin 68
Software piracy 59
Movie piracy 58
Gas and oil smuggling 53
Cigarette smuggling 50
Size of the global black markets
Largest black markets
Estimated annual
market value
(Billion USD)[44]
Total 1,829
Counterfeit pharmaceutical drugs 200
Prostitution 187
Counterfeit electronics 169
Marijuana 142
Cocaine 85
Prescription drugs 73
Opium and heroin 68
Software piracy 59
Movie piracy 58
Gas and oil smuggling 53
Cigarette smuggling 50
Size black
markets

8.  Corruption means the destruction, ruining or the
spoiling of a society or a nation. A corrupt society stops
valuing integrity, virtue or moral principles.
 Political corruption is the misuse of their powers by
state officials for their unlawful private gain.

9.  According to CPI ,INDIA is one of the most corrupt government in the
world
 Now ,CPI rank of india become improves from 94 to 83 in 2014 and
score increases from 36 to 38
 Movement of that black money is take place by two sources:-
1. By Hawala system
2. Transfer to Swiss bank

11. 1) Indian Coal Allocation Scam – 2012 – Size 1.86L Crore
2) 2G Spectrum Scam – 2008 – 1.76 L Crore
3) Wakf Board Land Scam – 2012 – 1.5-2L Crore
4) Commonwealth Games Scam – 2010 – 70,000 Crore
5) Telgi Scam – 2002 – 20,000 Crore
6) The Fodder Scam – 1990s – 1,000 Crore

13.  Swiss bank account are generally hold by the Senior bureaucrats
(IAS,IPS officers), Ministers of Export-Import,Comerce, Chief
Ministers, Top Industrialists , Horse Trader, Liquor Trade
 Pepole use these account for mainly three reasons :-
1. Privacy
2. Safety
3. Quality

16.  Inflation
 Increasing inefficiency
 policy failure
 Inequality of income
 Terrorist financing
 Improper infrastructure and social welfare schemes

17. •instead of keeping black money in safe deposits of foreign banks and
institutions(which earn zero interest), people will look to invest the same into
their own projects and new ventures, in short the money will re-enter the
Indian economy.
•This will lead to higher investment and thus, higher returns, which will
revert to no one else but we Indians. Subsequently there would be a rise in
per capita income (if we assume that the developmental effects of higher
investment has trickled down to all the sections of society) of the people of
the nation.
•If the loss to the government treasury due to abolishment of income tax is
counterbalanced by a proportional increase in corporate tax, it will bring
positive results. (Countries like UAE and Qatar have been successful in
adopting such a policy)

18.  POLICITACL FUNDING
 SELLING MONEY IN FORM OF JEWELLARY
 DONATION

19.  Indian govt. ask Swiss bank to divulge details of the depositors.
 Stop the use of 500 and 1000 rupee notes.
 Tax evasion should be checked by plugging loop-holes in tax system
 Imparting skills to the manpower for effective action (constant
training for skill development)
 People should we aware of ‘Right to Information’

20. The black economy underlies the major macroeconomic problems faced
by India - fiscal crisis, inflation and BOP problems. The micro and the
sectoral problems of the economy, like, education, health and
infrastructure also relate to the black economy. It weakens democracy. If
not checked, India’s growth story can become a thing of the past.
Political will is required to take the tough steps and that means
strengthening democracy and people should be known aware of that .
If matters are to be resolved, the public has to act against the entire
political class via alternative movements on a host of issues which will
throw up an alternative leadership.