Essay on the Effect of “Black Money” on Indian Economy
Another aspect may be mentioned here is that black money creates a situation in which money is transferred abroad, through unknown channels. Such transfer takes place violating and breaking all norms.
Observers have pointed out existence of black money in the society moulds the people perception and character in such a manner that they become greedy. Even there are kickbacks and bribery in defence deals and home affairs functioning which are ominous sign for a country’s security.
Black money becomes white through capital flight. A large part of money is sent to abroad and brought back into the coming through Hawla market channel.
In, the black money generation mechanism there is a nexus and liason among bureaucrats, political and business leaders. Black money eroded the values of our common people which is a dangerous sign for the nation as a whole.