Money laundering surged to $674.9 bn
Illicit financial flows account for 5% of India’s GDP: CII
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Curbing illicit trade
♦ A big threat to economy
♦ Needs to be tackled on war footing
♦ Indian economy surpassed $3 trillion mark in 2021
India Inc is worried over the staggering growth in illicit trade and views it as a threat to the economy and security of the country that needs to be tackled on a war footing. A report released by apex business chamber CII on Thursday based on data from international agencies states that the impact of India’s illicit financial flows works out to around five per cent of the country’s GDP.
“Trade-based money laundering in India soared to a whopping $674.9 billion for the 10-year period from 2009 to 2018, which reflects the magnitude of illicit trade that has emerged as a major threat to the country’s economy and security,” according to a report released by apex business chamber CII on Thursday.
Based on UNODC estimates, when the Indian economy surpassed the $3 trillion mark in 2021, the quantum of money laundering in India can be estimated at $159 billion, which is around five per cent of GDP. This accentuates the magnitude of the problem driven by the rise in illicit markets (trade, illegal drugs, arms, etc.) and non-market actors,” the report states.
The CII study suggests 6Cs as a policy recommendation and way forward to tackle the problem. They include cognisance of terrorism and organised crime under a regulatory framework, continuous and critical evaluation of illicit financial flows, central nodal agency for greater coordination, creating awareness and changing consumer preferences, combating trade-based money laundering, and cooperation and coordination at international level.
