Volume : VI, Issue : XII, December - 2016

SHADOW ECONOMY MENANCE: A GREAT THREAT TO INDIA

Dr. Neeru Garg

Abstract :

 With the growth of the economy in the post–independence period the extent of the parallel or shadow economy has been magnified and now playing a dominant role to mould the national policies. Presently, most economists feel that the size of unreported economy would be close to 40 per cent of GDP. India‘s GDP currently being in the neighbourhood of 62 lakh crore, the country‘s underground economy would be worth at least Rs 25 lakh crore. This simply means that the government is losing a tax revenue of more than Rs 7 lakh crore every year which is more than a year‘s total tax collection. This size of shadow economy can be reduced or eliminated through the recently introduced demonetisation drive. This paper is an attempt to analyze the current situation of shadow economy, its size, causes, impact and govt. steps to tackle the problem of shadow economy in India

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Dr. Neeru Garg, SHADOW ECONOMY MENANCE: A GREAT THREAT TO INDIA, Indian Journal of Applied Research,Volume : 6 | Issue : 12 | December 2016

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