Black economy,black money
India's Finance Minister denounced again the phenomenon of black money in his country and specified that most of it stashed abroad.He dared to give some precise figures which had been complied by three different think-tanks.According to these reports the size of black economy is estimated about 30% of India's GDP which is $1848 Billion in 2011.As a result underground economy would generate about $550 billion. It is interesting to compare with one of the leading european country. Italian authorities estimate that the underground economy represents about 35% of the GDP which is $ 2195 billion in 2011.As a result the black economy in Italy would generate about $760 billion.In both countries most transactions are believed to be in real estate and manufacturing.
Finally indian reports stressed that this loss of earnings were a huge challenge for both Federal and States authorities. For instance if these incomes were taxed at a rate of 30% it would enable each one of the 626 indian districts to build a 2000 bed hospital!