Indian black economy comprises 40 percent of its GDP

While there are no authentic figures about the black economy in India, Professor of economics, Jawaharlal University, Arun Kumar, who has written one of the most authentic books on the subject, ‘The black economy in India’, puts the figure at around 40 percent of the GDP.

According to the latest estimate of Central Statistical Organisation (CSO), the size of the Indian economy is around Rs. 61,64,000 crore. Thus, the size of the black economy, taking it at 40 percent of GDP, is around Rs. 25,00,000 crore or around $500 billion,.