India: The Black Economy Estimates by eminent economists reveal that India's parallel economy has risen from a mere 3 percent of the GDP in the mid-50s to around 50 percent today. The dimensions of this growth of corruption and generation of a black income in India are indeed, mind-boggling. The components of the parallel economy are numerous. Tax-evasion, smuggling, bribe-taking, foreign-currency racketeering are just some of the more prominently visible and talked about forms. The root causes for a thriving parallel economy in India are many. For that to be understood in the right perspective, one needs to take a look back at the times gone by. In India, corruption has not always been perceived to be a severe problem that could have had a negative impact on development and social ethos. There were (and are) many who believed that corruption enhanced the efficiency and acted as a lubricating agent in governmental departments which were not only overstaffed but
This article was initially published in a major Indian national newspaper, "The Pioneer," after overcoming numerous hurdles, on October 20, 2004, titled, "India's dark underside," and it provides an insight on India's number one problem. This piece of paramount importance for India, is the first ever on this subject in an Indian newspaper. India can be saved if the advice of this article is heeded. Much of what this article suggests, is however being attempted, in today's India.