Black money in India accounts for 20% of GDP, estimated at Rs. 500,000 crore or $100 billion annually. This huge sum exceeds the central government's entire budget and is more than twice India's annual exports. Kerosene, an essential commodity for cooking, is often purchased on the black market due to ration card limits not meeting increasing demand. The Hawala scandal in the 1990s was India's first major political corruption case, involving $18 million in alleged bribes to politicians through hawala brokers with possible connections to militant groups in Kashmir.

1. Indian Black Market

2. BlackMoney Black money, in simple terms, means the money on which tax is not paid or the money that is obtained illegally as in the form of bribes. It is said that black money in India accounts for 20 % of GDP. If this is true, then black money generated every year must be around Rs 500,000 crore or $ 100 billion. This is a huge amount, more than the entire budget of the government at the Centre.

3. Black Money(contd..) How big is $ 100 billion? It is bigger than you think. It is worth Rs 500,000 crore, which makes it bigger than the central budget. It is more than twice our annual exports. It is more than what the US government is expected to pay those who have suffered from the September 11th smash.

4. Black Money(contd..)

5. Kerosene is the most essential commodity in India generally used for cooking purposes. Ration card permits only a certain limit of kerosene to be allowed per family. The increasing need of kerosene results in its purchasing from the black market. Kerosene

6. Kerosene (contd..)

7. HawalaScam The Hawala scandal startled Indian public as it was the first case when the Prime minister himself was accused of corruption. Adding to it was the expose that Rajiv Gandhi held secret accounts in Swiss banks. Hawalascam involved payments allegedly received by politicians through hawala brokers, the Jain brothers. It was a US$18 million bribery scandal that implicated some of the country's leading politicians. There were also alleged connections with payments being channelled to HizbulMujahideen militants in Kashmir.