Can India be a black market haven?

[deepakraam]

We have had enough of the scams in India in recent days.The total scam money when ploughed into the economy can definitely cool down the prices & deficits to some extent.I'm going to talk about the money that are stashed abroad.When the domestic scam money is enough to manage the deficit think about what can happen when India brings back the black money stashed abroad.Guesstimate values the money parked abroad anywhere in the range of $1.7B to $1Trillion.With this money,our India can become a deficit free economy.We can develop our country with this money.But why the Govt is hesitating to bring back the money to the country?Money parked abroad may belong to politicians,celebrities,sportstars.So,bringing money is only one part of the problem.When the truth is revealed in public,it will create an unrest in the country.Inspite of all this,if the Govt brings the money there is no guarantee that the money will not return back to the same tax havens abroad.There is more problem than it meets the eye.Can India become one of the countries to park the same blackmoney?If it becomes one,atleast we can safely assume the money is circulating domestically and not going out of the country.

What do you think?

-Deepak.

 

[shankaruu]

Good thought process. The very notion to develop India a black money park is prevalent but non ethical.In order to pull some foreign black money, financial institutions need to create conducive environment in terms of sustainability , confidence building , customer focus and overall supporting truss.

 

[ankita25]

Good thought process. The very notion to develop India a black money park is prevalent but non ethical.In order to pull some foreign black money, financial institutions need to create conducive environment in terms of sustainability , confidence building , customer focus and overall supporting truss.

By doing that we might receive a temporary relief from the defict problem,but one should also remember that when India can approach other countries with TIEA(Tax Information Exchange Agreement) for unrestricted trade between them the other booming and developed countries can put the same conditions on us.As a result we will have to share information about the investors,because we cannot afford to stop trade with those countries.If we choose not to share the information,then Aggregate demand and GDP will be affected due to direct effect on exports and imports.