Strategies to Tackle the Issue of Black Money in India

Economists and social scientists have shown considerable interest in recent years to measure the gap between the observable economic activity and the actual economic activity. This has led to the conceptualization of ‘hidden economy, although several synonyms such as black, shadow, underground, unobserved, unofficial, unrecorded and parallel were used for the ‘hidden economy. Black money is a new threat for the Indian economy. In India parallel economy is expanding very rapidly. The Government of India has introduced many commissions for estimating black money. In India amount of black money are increasing continuously which is badly impacts the economic growth of the nation. Such money is a new challenge for Indian economy. Over six and half decades the government has at various times announced several schemes offering opportunities to bring black money overboard but the results are not so effective. Hence, the need of the hour is a multi-pronged strategy including joining the global crusade against black money, creating an appropriate legislative frame work, setting up institutions for dealing with illicit money, developing systems to implementation, and imparting skills for effective action, is required to deal with issue of generation of black money and its illicit transfer outside the country and for bringing it back to India.