According to Arun Kumar, professor of economics at the Jawaharlal Nehru University and author of the book 'Black Money in India', at least US$70-80 billion flows out of India every year into overseas investment hedges like gold or real estate. Kumar estimated that the cost to India of its "black economy" was 5 per cent of GDP growth every year since the mid-70s.
"We are aware of the crackdown on illegal Cash Pot activities, however, it is difficult to precisely estimate the losses," said SVL President and Chief Executive Officer Brian George. "Based on the success of the BGLC, we believe it is down, however, in these difficult economic times we recognize the temptation for this activity by the small operators," George told The Weekly Gleaner via email. "This has the greatest potential for growth and it is the area that we understand that the BGLC is focusing their activities," explained George.
