WASHINGTON, DEC 17 (PTI): As India continues its pursuit of suspected black money stashed abroad, an international think-tank has ranked the country third globally with an estimated $94.76 billion (nearly Rs. 6 lakh crore) illicit wealth outflows in 2012.
As a result, the cumulative illicit money moving out of the country over a ten-year period from 2003 to 2012 has risen to USD 439.59 billion (Rs 28 lakh crore), as per the latest estimates released by the Global Financial Integrity (GFI).
Russia, China top list
Russia is on the top with USD 122.86 billion, followed by China at the second position (USD 249.57 billion) in terms of the quantum of black money moving out of a country for 2012 — the latest year for which these estimates have been made.
The Washington-based research and advocacy group further said that the illicit fund outflows from India accounts for nearly 10 per cent of a record USD 991.2 billion worth illegal capital that moved out of all developing and emerging nations in 2012 to facilitate “crime, corruption, and tax evasion”.
As per GFI’s 2014 Annual Global Update on Illicit Financial Flows report, that the cumulative illicit outflows from developing economies for ten years between 2003 and 2012 stands at USD 6.6 trillion.
This includes USD 439.59 billion worth illicit money that has moved out of India in these ten years, putting the country at fourth position in overall ranking for a decade, after China (USD 1.25 trillion), Russia (973.86 billion) and Mexico (USD514.26 billion).
In these ten years, an average of USD 43.96 billion of black money is being sent out of India every year, GFI said.
India woes
The estimate of the huge illegal money flow follows a Supreme Court—constituted Special Investigation Team (SIT) tracing Rs. 4,479 crore in the accounts of Indians figuring in a list of account holders of HSBC’s Geneva branch.
Besides, the SIT has also disclosed tracing unaccounted wealth worth Rs. 14,958 crore within India, which are now being investigated by the Enforcement Directorate and the Income-Tax Department.
The issue of black money has been matter of a serious political debate in India, including during the last general elections. While the new government has said it is committed to tackle this menace, there are no official figures for the overall size of illicit wealth stashed by Indians within the country or abroad.
As per GFI estimates, the amount of illicit funds that moved out of India in 2012 was much lower than the same for neighbouring China, as also Russia.
These three countries are followed by Mexico at the fourth place (USD 59.66 billion) and Malaysia at fifth (USD 48.93 billion).
Authored by GFI chief economist Dev Kar and GFI Junior Economist Joseph Spanjers, the study further said that illicit financial flows of a record high USD 991.2 billion in 2012 marks a dramatic increase from 2003, when size of such funds stood at USD 297.4 billion.
Over the decade (2003—2012), the study found that illicit financial flows are growing at an inflation—adjusted average rate of 9.4 per cent per year.