Impact of Black Money in the Indian Economy
Added on 2021-06-16
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Running head: IMPACT OF BLACK MONEY ON THE INDIAN ECONOMYIMPACT OF BLACK MONEY ON THE INDIAN ECONOMYName of the StudentName of the UniversityAuthor’s Note
IMPACT OF BLACK MONEY IN THE INDIAN ECONOMY1Table of ContentsSection1: Brief description of research topic...................................................................................2Section2: Aims and objectives of research......................................................................................2Section 3: Literature review.............................................................................................................4Present status of black money in India............................................................................................6Impact of black money in commerce or management sector..........................................................9Black money enhances poverty in India........................................................................................10Section 4: Critical analysis of Text................................................................................................12Conclusion.....................................................................................................................................13References......................................................................................................................................15
IMPACT OF BLACK MONEY IN THE INDIAN ECONOMY2Section1: Brief description of research topic The present research study provides an overview on the impact of black money on theIndian economy. Black money refers to the money that is earned through illegal activitiescontrolled by regulations of the nation. This proceed of black money are generally received interms of cash from the underground economic activities that are not taxed. Black money usuallyresults in functioning of the parallel economy in the nation (Arora 2012). One of the widespreadforms of black money is by illegal means via black market. In this 21st century, it is merelylooked upon as anti- social activities or unlawful activities. Black money thereby has perniciousimpact on the performance of the economy. It can also be stated as total production of productsand services either operated legally or illegally but this is not considered as official evaluation ofthe nation’s Gross Domestic Product (GDP) since it is not noticed by the authorities as well asdeclared by creators. This study discusses about the causes for creation of black money and itsimpact on the Indian economy. The measures taken by the Indian government for controlling theblack money is also explained in this study. Section2: Aims and objectives of research2.1 Black Money in India refers to the funds that are received on the black market on whichtaxes as well as income have not been paid. In addition, unaccounted money which is concealedfrom tax administer also relates to black money in this nation (Gajjar 2016). Recent facts reflectsthat near around 22000 crores rupees have been mainly accumulated by criminals for the vestedinterest. The amount of black money that has been deposited in international banks by theIndians has been unknown. Few recent facts reflect that around US $100.06 trillion is being heldillegally in Switzerland. The Swiss Bankers Association as well as Switzerland Government has
IMPACT OF BLACK MONEY IN THE INDIAN ECONOMY3claimed that these facts are fabricated and thereby the amount held in Swiss bank account by theIndians is US$2 billion. The Indian government clarified that the total amount of black money inthe year 2012 was $500 billion rupees. This illegal money in India was more than other countriesacross the globe (Kumar 2016). In the year 2016, the Prime Minister of India announced ceasingof some banknotes in order to control corruption and black money in the nation. This action wastaken by the government of India as the cash circulation procedure has been related to corruptionaffecting lower classes of society. By the end of this year, the Income Tax department of thiscountry has detected around 41.72 billion rupees of undisclosed income and thereby seized newnotes of 1.05 billion rupees. 2.2 Objectives of researchThe main objectives of the research are –To determine the causes for creation of black money in IndiaTo identify present status of the black money in IndiaTo identify how black money is enhancing poverty in IndiaTo analyze the impact of black money in India specifically the management andcommerce sector.To determine the measures taken by the government of India for curbing black money inthe nation2.3 The academic area that relate to this research study is the economics. However, this areaof study reflects on the impact of black money on the GDP, inflation, fiscal and monetary systemof India. Thus means the black money impacts the growth as well as development of Indianeconomy. Black economy reduces the growth potential since it creates efficiencies across the
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