ECONOMIC GROWTH AND BLACK MARKETING

1. ECONOMIC GROWTH
AND BLACK MARKETING

2. ECONOMIC GROWTH
 An increase in the capacity of an economy to
produce goods and services, compared from
one period of time to another.
 It can be measured in nominal terms or in real
terms.
Increase in Demand
• Lower interest rates &
income tax
• Increased wages,
government spending
& consumer
confidence
Increase in Supply
• Increased capital,
working population,
Labour productivity
• Technological
improvements
CAUSES

3. IMPORTANCE
 Reduce Poverty
 Reduces
Unemployment
 Budget deficits
 Living Standards
 In the FY 2014 – 2015
economic growth of
India was 7.4% and in
2015 – 2016, we
expect to have a
growth of 8.1 – 8.5%.
Inflation decreased by
6%. CAD decreased
by 1%
MAJOR OBSTACLES TO INDIA’S
GROWTH
•Infrastructure Shortages
•Large Fiscal Deficit
•Restrictive Labor Regulations
•Unreformed Financial Sector

4. BLACK MARKETING
 A black market or underground economy is
the market in which goods or services are
traded illegally.
 Common black markets are - Drugs (Both
Legal & Illegal),Slave Labor, Animals
(Particularly Furs and Exotic creatures),
Human Organs and Stolen Goods.
 Black market is estimated to be as much
as 36 percent of the GDP of developing
nations and 13 percent of developed

5. causes of blackmarket:
 When the supply of goods is not equal to the
demands
 Increasing level of poverty and
unemployment
 There is no controls on licensing system
 Due to lacking of education and awareness
MeasurementDirect Approach
•Questionnaire & Survey
•Employment analysis
Indirect Approach
•GDP and expenditure
analysis
•Energy conception analys

7. Recommendations for legalization
 Simplify/Rationalize tax laws
 Consolidating the public sector and making
administrations more efficient
 Stringent laws to control and monitor
 Creation of awareness among students on
the evil of black marketing