Tuesday, December 2, 2014

Stop Generating Black Money In Indian Economy

India is one of the world’s largest generators of black money, and this is aided and supported by a weak institutional mechanism and incentives framework, which actually encourages it. The generation of black money in India is both a planned by-design activity and an unplanned ‘we-are-like-this-only’ sociocultural aspect of how we conduct our day-to-day lives, especially in everyday transactions.
Given complex social and economic dimensions to black money, it is not susceptible to easy solutions. Which parts of the Indian ecosystem are conducive for the generation of black money and what immediate steps can the government take to curb it?

What is Black Money: Black money is money on which there is legitimate tax due in India but remaining unpaid.
 What is one Main Source of its Generation:  India’s real estate sector is the ‘mecca’ of black money generation and habitation. It is estimated that of India’s $2 trillion economy about 10-15% comprises real estate transactions of which about 40% is estimated to be in cash transactions!
India should emerge as a torchbearer on the global stage through its concrete actions at home and abroad to curb black money, which will make it a global role model to emulate and not a pariah to shun.