At last, the CBI director has come out with some estimate of illegal money stashed by Indians in tax havens. According to him, around 500 billion dollars (nearly Rs 24.5 lakh crore) of illegal money belonging to Indians is deposited abroad and that largest depositors in Swiss Banks are also reported to be Indians. As far as India is concerned, it is a huge sum of money, which, if brought back to the county and invested, could solve many of the ills facing the country. According to a recent report (November 2010) by Global Financial Integrity (GFI), The Drivers and Dynamics of Illicit Financial Flows from India: 1948-2008, India has lost around Rs.9.7 lakh crore ($ 323 billion) in illegal capital flight between 1948 and 2008.17 Financial Integrity (GFI), estimates that tax evasion, crime, and corruption have removed gross illicit assets from India worth US $462 billion. The report also finds that the faster rates of economic growth since economic reform started in 1991 led to a deterioration of income distribution which led to more illicit flows from the country. Moreover, the report finds that the poor state of governance is reflected in a growing underground economy which in turn has fueled more transfers of illicit capital from India. This analysis is cast in terms of a pre- and a post-reform period spanning a total of 61 years since independence. This report puts into stark terms the financial cost of tax evasion, corruption, and other illicit financial practices. It also shows that these illicit outflows contribute to stagnating levels of poverty and an ever widening gap between India’s rich and poor Dr. C. Murukadas, The Times of India, 15.02.2011)
Friday, August 3, 2012
At last, the CBI director has come out with some estimate of illegal money stashed by Indians in tax havens. According to him, around 500 billion dollars (nearly Rs 24.5 lakh crore) of illegal money belonging to Indians is deposited abroad and that largest depositors in Swiss Banks are also reported to be Indians. As far as India is concerned, it is a huge sum of money, which, if brought back to the county and invested, could solve many of the ills facing the country. According to a recent report (November 2010) by Global Financial Integrity (GFI), The Drivers and Dynamics of Illicit Financial Flows from India: 1948-2008, India has lost around Rs.9.7 lakh crore ($ 323 billion) in illegal capital flight between 1948 and 2008.17 Financial Integrity (GFI), estimates that tax evasion, crime, and corruption have removed gross illicit assets from India worth US $462 billion. The report also finds that the faster rates of economic growth since economic reform started in 1991 led to a deterioration of income distribution which led to more illicit flows from the country. Moreover, the report finds that the poor state of governance is reflected in a growing underground economy which in turn has fueled more transfers of illicit capital from India. This analysis is cast in terms of a pre- and a post-reform period spanning a total of 61 years since independence. This report puts into stark terms the financial cost of tax evasion, corruption, and other illicit financial practices. It also shows that these illicit outflows contribute to stagnating levels of poverty and an ever widening gap between India’s rich and poor Dr. C. Murukadas, The Times of India, 15.02.2011)
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