Shadow/Black Economy Of India

We talk about in Black money Swiz Bank,but how many of u know its being directed back into India.Our government don't want rich people to lose money,so only government as waited this much long time so that rich move there currency back into India.When government decided to seize swiz account there will be nil balance.Government will project zero black money.Let look into in depth analysis of black money,black economy,shadow government etc

Whats black economy?

It comprise of fake product,counterfeit product,smuggling,pirated,gambling,prostitution etc.List is too big for consideration.Black economy may multiple the individual wealth but it will destroy countries combined wealth.In India black economy size about 40% of the GDP.

Every year India government losing $500 billion of money due to black economy.If we stop this big hole itself we can make big time policy for the people.Black economy is spread like a virus in many sectors.Black economy demolish structure of economic system in India.In order avoid tax many hide there wealth from government.

How Black Money Generated?

Its just approximate Value but value may be higher than projection specified here,

Import:-About 10-20% of the import are moving into Black economy.The projection lies between 20,000 crore -40,000 crore.Smuggling also the major contribution under this sector.
Public Projects:-Most of the project delays in this sector are due the money corrupted.Nearly 20% of the money as black money.Estimation between 60,000 - 80,000 crores.
Housing  & Service:-Most of the black money comes from this branch due to non-billing and hiding of wealth.30% of the money approx 3,00,000 crores.
Subsides:-Every rupee Indian Government spent as subsides in which only 15 piase are spent for the cause.50,000 -70,000 crores.
Industrial Output:-Production output are hidden secret of every country to avoid tax.nearly 1,00,000 crores are locked every year in this sector as black money.

Where is this Black Money?

If you think black money in Swiz bank then your in 20th century come back to 21st century.Rich people in India are genius.when government started to talk about black money itself they started to route back money.Simple way back policy FDI.Most of the money invested in India as FDI are Indian rich people black money converted as white through FDI.It's true most of the money are routed from Maldives,Mauritius etc.Its already back into India,but for bring more money into India corporates ask for more FDI.

Now with whom this Black Money?

Real Estate:-Major share of black money move into real estate since its hot cash exchange.Most of resident complex,mall,theaters etc are from Black money.Government fix land value low but selling and buying taking at 100% higher rate.
Investment:-Finance sector a key place were black money routed.Construction sector is the combined black money of many.
Gold:-Gold most secure asset which can be transacted into any currency of there value.Gold most powerful investment for black money.
Politics:-2009-2010 congress party spending Rs 525.97 crores and BJP Rs 261 crores(according to auditing report).Election commission found that last 5 assembly election each party candidate spent around 25-50 crs.Its around 1000 assembly total estimate 4,000 crs of Black money.The cost value change for MP Election.The sum value may touch 10,000 crs.
Film Industry:-An estimate say that about 60% of the movie are produced with the black money.Every year 1000 films are released in India.An estimate of over 1,000 crs black money flow in to Film Industry.
Cricket/IPL:-Most of the Ipl spending are kept secret from public.75,000 crs of Bidding taking place   in IPL5.Everything bidden are black money.             


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