HOW BLACK MONEY IS AFFECTING INDIAN ECONOMY

DEFINITION: Black money can be defined as income,as from illegal activities,that is not reported to the government for tax purposes.Black money circulating in the economy is a big threat to the economy.It is also a cause of big loss in the tax-revenues of the government.

EFFECTS: Black money results in transfer of funds from india to foreign countries through various channels.Due to black money, distribution of income gets affected. In india, the major portion of population divided in only two parts- very poor and highly rich.Whereas progress of any country depends on high middle class group which is not enough as per growing indian economy.Since last fifty years or so on, the people is asking the government to tackle the problem of black money, but the government is not sincere enough.The holders of black money keep such fund with a bank.It has slowed the growth of indian economy.The black money which is generated is not put to best of use and government loses revenue.
Loss of government revenue effects our development plans and social sector.The money which is sent abroad is stacked in overseas banks specially swiss and other safe heavens and is not used for development of economy.

CONCLUSION: Black money is affecting indian economy very adversely.The major effect of black money on indian economy is non stop corruption.Due to this,there is unequal distribution of income.Tha black money of indian people kept in swiss bank and other banks should be brought back to india, so that it can be used for overall development of the country and its people.The taxes should be paid timely to the government to avoid retention of black money.If the level of black money will be brought down,then indian economy could be railed on the path of growth and development.