How much black money does India have?
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#india #taxhaven #swissbank #scams #twitterthread
Black money is a topic of common interest for every Indian. From corridors of power to the common man, black money has always remained a hotly debated topic in India. Despite many efforts, black money is still a mirage everyone is chasing in India.
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Black money is the unaccounted money earned by illegal means, hidden from the tax and legal authorities.
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Most of this black money originates from corruption and illicit business activities. The money is transferred to offshore tax havens and kept there for decades.
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The estimate of the total black money of India and Indians varies a lot. There is no official estimate to put a number per the government.
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The highest estimate comes from a writ petition filed in the Supreme Court. According to this estimate, India's total black money is about ₹855 lakh crores ($11.4 trillion), almost 4 times India’s GDP.
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As per another affidavit by the Central Bureau of Investigation (CBI), India has close to ₹37 lakh crores ($500 billion) of black money, just ₹2 lakh crore short of the 2022 Union Budget.
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The affidavit was filed in 2011. In the next 10 years, it is safe to assume the number CBI has quoted has changed.
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Due to the lack of transparency, it is hard to determine the total black money in India. However, in a research paper published by Friedrich Schneider, the black money in India is 23 - 26% of India’s GDP.
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The figure is lower than other Asian countries (28 - 30%) and African and Latin American countries (41 - 44%).
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Much of this black money is deposited in the banks of tax havens like Switzerland, Luxembourg, Cayman Islands etc.
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Another chunk of black money is kept as real estate property in the world's major cities. Most black money is held in India as rare metals like gold and benami real estate properties.
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Over the years, the governments have tried to identify black money in India and abroad. Despite many laws and investigations, black money remains a massive headache for everyone.
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We are still not anywhere close to getting a complete picture of the black money ecosystem.
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