India is fourth largest exporter of illicit outflows

Posted By: Super
Subscribe to GoodReturns
For Quick Alerts
Subscribe Now  
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    Washington, Dec 16 (IANS) With a total $439.59 billion, India has jumped one rank to become the fourth largest exporter of illicit outflows over the decade after China, Russia and Mexico, according to a new study.

    India with $94.76 billion was also the third largest exporter of illicit capital in 2012, the most recent year included in the annual update of illicit financial flows released Tuesday by Global Financial Integrity (GFI), a Washington -based research and advisory organization.

    India is fourth largest exporter of illicit outflows
    A record $991.2 billion in illicit capital flowed out of developing and emerging economies in 2012-facilitating crime, corruption, and tax evasion, said the report on "Illicit Financial Flows from Developing Countries: 2003-2012,"

    It marked a dramatic increase from 2003, when illicit outflows totaled a mere $297.4 billion.

    The report pegs cumulative illicit outflows from developing economies at $6.6 trillion between 2003 and 2012, the latest year for which data is available.

    According to the report, the five biggest exporters of illicit financial flows over the decade are: China $1.25 trillion, Russia $973.86 billion, Mexico $514.26 billion, India $439.59 billion and Malaysia $394.87 billion.

    GFI also found that the top exporters of illegal capital in 2012 were: China $249.57 billion, Russia $122.86 billion, India $94.76 billion, Mexico $59.66 billion and Malaysia $48.93 billion

    The report found that illicit outflows are growing at an inflation-adjusted 9.4 percent per year-roughly double global GDP growth over the same period.

    "As this report demonstrates, illicit financial flows are the most damaging economic problem plaguing the world's developing and emerging economies," said GFI President Raymond Baker.

    "These outflows-already greater than the combined sum of all FDI and ODA flowing into these countries-are sapping roughly a trillion dollars per year from the world's poor and middle-income economies," he said.

    "It's extremely troubling to note just how fast illicit flows are growing," stated GFI Chief Economist Dev Kar, the principal author of the study.

    These outflows are growing fastest in and taking the largest toll-as a share of GDP-on some of the poorest regions of the world, he noted.

    "These findings underscore the urgency with which policymakers should address illicit financial flows," Kar said.

    (Arun Kumar can be contacted at arun.kumar@ians.in)

    Read more about: exports
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more