India's Black Money Estimated at 10 Percent of GDP
This time it took an enormous effort by the Parliament and a civil society movement to initiate the project. In 2011 March three ‘think tanks’ were selected to estimate the quantum of black money, which includes NIPFP, National Council for Applied Economic Research (NCEAR) and National Institute of Financial Management (NIFM). Three reports were prepared, only the first report prepared by NIPFP has been submitted where as officials in the finance ministry rebuffed to release the status of other two reports.
In the earlier study carried out by NIPFP in 1976 and 1981 showed that the black money estimated in the country then was around 15 percent to 18 percent of GDP and 18 percent to 21 percent of GDP respectively.
As listed on a white paper about black money in the Parliament last year, one of the major areas for generating of black money was tax evasion through transfer pricing, as expressed by the then finance minister, Pranab Mukherjee.
A private study report was quoted on the white paper stating, “developing countries may be losing over $160 billion of tax revenues a year, primarily through transfer pricing strategies,” as reported by TNN.
