Overview for The Black Economy in India
In 1990-91, according to various estimates, the black economy constituted about 35 per cent of the national economy, which was larger than either its primary or secondary sectors. Since then black income generation has increased not only through both legal (real estate transactions, the share market) and illegal (hawala, financial scams, gold smuggling) activities but also via instances of corruption. The New Economic Policies expected to counter its growth have been unsuccessful in containing it. In this empirically rich and finely argued book, Arun Kumar critically examines the standard explanations for the causes and consequences of black income generation and the methods suggested for curbing it. His incisive analysis lays bare the pernicious effects of black income on the macroeconomy and the resultant inefficiency, waste and sub-optimality in the economy and society. It also spotlights the role of criminalization and the emerging nexus of the businessman, politician and bureaucrat in perpetuating the black economy. Showing the limited success of technical remedies like the VDIS, Arun Kumar argues in favour of structural remedial measures, which include empowering people through a right-to-information act. This revised edition has a foreword by ex-Prime Minister V.P. Singh and new appendices on employment and income in illegal activities in India and money laundering.
Arun Kumar (Author)
Arun Kumar has been watching the Indian poll scene for thirty years as a professional journalist. Since 1989, he has organized the election coverage of the Press Trust of India, the country's premier news agency â€“ on five occasions for the Lok Sabha, besides numerous polls to the state assemblies. This is the fifth in the series of election books by the author. His works include, The Tenth Round: The story off the 1991 elections, The Battle for the Heartland, on the 1993 assembly elections, The Turning Point telling the 1996 poll story and On Coalition Course after the 1998 voting exercise. A Master in Political Science, with international relations, in 1980 he became the first Indian correspondent to serve in Pakistan after the 1965 Indo-Pak war. From one closed society, he went to another â€“ China before returning back to India in 1988. Born in Delhi in 1946, Arun Kumar worked for a Delhi magazine and a newspaper in Ahmedabad before joining PTI in s1969. He now works as a Public Affairs Adviser.