INDIAN BLACK MONEY

Indian deposits in Swiss banks is reported to have dropped from $800 million in 2016 to $524 in 2017. Further to this Swiss non-bank loans and deposits have reduced by a significant 80.2% between 2013 and 2017. Swiss banks liabilities to Indian residents using BIS Locational Banking Statistics (in million USD)
2013 - 2648, 2014 - 2234, 
2015 - 1447, 2016 - 800
2017 - 524
The total deposits in Swiss banks by Indian individuals and enterprises was Rs 6,625 crores in 2019.

India's black money is estimated to be 62% of GDP whic is larger than the income generated by agriculture and industry put together, which is about 39% of GDP. Out of book transaction, parallel books of accounts, manipulation of books of accounts and sales receipts, under reporting of production, manipulation of expenses, transaction through associate enterprises etc are the prime causes for black money generation. Real estate, Bullion and jewellery transactions, Financial market deals, public procurement, non-profit sector etc are also cause black money generation.

According to some studies 90 to 97% of black money generated is lying within India and not outside. Since corruption is rampant in our country it may not be possible to confiscate this money or to bring it under legitimate accounting, the government may find alternative means to pump out the money for public benefits. If the government can offer certain concessions for investments in some priority sectors part of these money may come out.

KV George
kvgeorgein@gmail.com

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