MOBI Understanding the Black Economy and Black Money in India À cheapnikeshoes.co À

The Narendra Modi government's sudden demonetization of '500 and '1000 notes in November 2016 failed to put a dent in the black economy but caused untold hardship to hundreds of millions of Indians It has crippled the country's economy for a long time to come In this book Arun Kumar the country's leading authority on the black economy tells us why Modi's gambit failed He shows us the way in which the problem can be rooted out provided the government has the political will and determination to actToday the black economy is estimated to be 62 percent of GDP or about '93 lakh crore 14 trillion Corrupt businessmen corrupt politicians and corrupt members of the executive bureaucrats police and the judiciary are responsible for controlling the black economy and enabling its growth If the black economy were to be dismantled and turned into a part of the 'white' economy the country's rate of growth would be 12 percent If it had not grown the way it has since the 1970s India's per capita income today would be approximately '7 lakh per annum 11000 and India would become the second largest economy in the world If the black economy were taxed at current rates it would generate '37 lakh crore in additional taxes and the union budget would show a surplus of '31 lakh crore instead of a deficitThe failure of successive governments to tackle the problem effectively has been the single biggest obstacle to eradicating poverty It is the cause of both widespread policy failure and the inability of the nation to improve its living conditions rapidly


10 thoughts on “Understanding the Black Economy and Black Money in India

  1. says:

    This felt like a long blog or magazine article a long Caravan Indian news magazine cover story Have read a few 200 page large font books lately but this one is even half of those at 100 pages Or maybe it will feel like a poor cousin of Gurcharan Das's books loved his India Grows At Night on a similar themeThe author talks of the origins growth functioning and remedies of black money and black economy He also takes a brief look at PM Modi's demonetisation Inevitably bcoz of its length such books leave one dissatisfied Still a good introduction to the topic Thankfully didnt spend money on it as it was avail in Kindle Unlimited


  2. says:

    A simple straight forward work on what needs be said on Black economy without bogging down statistics Relevant to times when we are waging a war against our own shadows


  3. says:

    With so much talk about black money in recent times a book like this helps a layman understand what it actually stands for within the Indian context Devoid of economics jargon this book by Prof Arun Kumar who has researched the black economy in India since 40 years is a must read


  4. says:

    After demonetization of 2016 when there have been lots of talks on black money this book is supposed to be timely busting lots of myth and providing some groundbreaking objective analysis Sadly the book fails to cover new grounds that I have not already read in umpteen articles published or understood in newsroom debates The author admits in the acknowledgements 'Since I already had a lot of published and unpublished material I felt that I could uickly write a book' There are only 4 5 pages on the subject of demonetization which is a big disappointment And the book reads exactly like that Is it unfair to expect from Prof Arun Kumar who is country's leading authority on Black Economy?It's not that the book is a complete drab I lay below some key highlights It is highly difficult to come up with accurate white economy numbers let alone black economy However with whatever calculation methods and data available Indian's black economy is estimated to be 62% of GDP Only single digit percentage of black economy is stored in cash Had there been little or no black economy since independence every one of us would have been 7 times richer on average Black Economy can be defined by the wealth not under the reports of the tax authority This is a no brainer that black economy is bad for any nation The actual rate of growth is higher than that of white economy but lower than the potential rate of growth The reason is that productivity of investment is lowered by the black economy due to wasteful investment and misuse of capital Black money not only impacts the society economically but also in other aspects like health education and environment Tax itself is not a bad thing High tax countries like Scandinavian countries don't generate huge black economy Most people evade tax as the believe that their tax money is not properly utilized and they are not the recipient of any direct or indirect benefits from it In order to tackle the black economy the triad of corrupt politicians businessmen and the executives has to be dismantled Some of the potential short term measures to tackle black economy are bringing political parties judiciary and the CMPM offices under the ambit of RTI take immediate action on available information establish autonomy of institutions by having head of these organizations independent of their political bosses Tax reform judiciary reform bureaucracy reform and global agreement to end secrecy of banks and tax havens should be the mid term strategy Finally the only way in which black economy can be successfully tackled in long run is if successive governments show the political will to act Political reforms and corporate reforms are of essence to bring in this long term plan This can be brought by people's movement


  5. says:

    Short crisp and to the point analyses of the Black Economy that has afflicted India It is well researched and the conclusions about demonetisation are interesting The prescription however is shallow


  6. says:

    This is not for the cool out of context free market congregants who see the private sector as the panacea to all inefficiencies and black markets within the Indian system Prof Arun Kumar's recommendations are very old fashioned and statist but uite sober However there is not much rigour that a 120 page work can offer so it comes across as a benevolent pamphlet than a work that can be taken uite seriously Still the difficulties in separating white and black money within the system and the deleterious effects of black money are reasonably well drawn within its narrow precinctsCounterpoints are merely dismissed and not discussed in detail at all The 2016 demonetization is bashed but treated as a well intentioned exercise that with the wisdom offered by a bit hindsight and the author's own implied diabolism of the political class seems suspect The book also suffers from mediocre editing writing and conceptualization at least demonstrated by the egregious brandy analogy with respect to emphasizing the necessity of estimations of black money's contribution to the GDP And the Rs 399 price is daylight robbery


  7. says:

    This book is not for a layman The author has effectively started the book by counting on the story of the blind men and an elephant Ironically after reading book we may also feel ourselves as one of blind men who got the tail of elephant and assumed it as a broom For example the author has correctly identified the problem of black economy as “a triad of corrupt businessmen corrupt politicians and corrupt members of the executive” he fails as I understood to give a specific way by which this triad can be eliminated It is better if we see this book only as an opinion book rather than a reference book for an economics student


  8. says:

    Initial chapters were well researched outlining definition of Black Economy and it's variations and comparison with rest of the world However as the author delves into finding solutions to it he miserably fails and makes broad propositions with no logical correlations to it Further the tone and tenor of the book is totally negative on every initiative taken so far Be it bringing PAN which he vehemently ridicules but fails to suggest any robust alternative and same with Demonetization


  9. says:

    An unparalleled book that helps understand the Black Economy India is uniue in creating a huge and growing currently 65% of the total parallel economy Prof Arun Kumar has acknowledged expertise this relatively unknown area and explains how different terms used loosely to depict the same have deep and nuanced implications Great book for anyone remotely interested in economics One should gift a copy to 56 before he starts another round of Demon


  10. says:

    An excellent primer on the overall nature of the country's black economy This is not in any way a thorough work though it is uite clear that the author is ualified to pen one It's a tiny book that serves its purpose Personally it allowed me to develop a framework to process the events that take place in the black economy Recommended to all as it is written in a very simple style