Book Review: Understanding the Black Economy and Black Money in India

The book begins with an explanation of the black economy, its origin, growth, and what fuels it in India. The term Black economy is known by 30 different names across the world.

Through the book, one can easily get to know the other face of our economy. India’s black economy is estimated to be 62% of GDP – generating around rupees 93 lakh crore of revenue, which is quite shocking. As Prime Minsiter Rajiv Gandhi said that out of every rupee sent to the field, only 15 paise reached the ultimate recipient it was intended for.

This book explains why any government is not able to eradicate black money even after making rigorous efforts. It is because remedial steps are taken without properly diagnosing the problem. The structure of economy is such that it benefits only the rich not the poor.

This book also takes into account the recent attempts (Demonetization of 500 and 1000 notes) made by the Modi government to curb the black money, which was a big failure.

The book underlines major socio-political and economic problems faced by India. The black money remains the primary and biggest reason for poverty in India.

“Black economy is so much a part of our white economy, a tumour in the center of the brain – try to remove it and you will kill the patient.”