One of the major financial issues that have been responsible for the limited growth of Indian economy is huge reserve of black money deposited in various foreign banks. This has not only put the infrastructure growth across the nation on a back burner but has also limited the real estate investment opportunities for the Indian middle class. Despite the big ambitions and great potential in the area of infrastructure nothing much is happing, primarily due to the lack of enough funds. But now, with the government finally having taken some concrete steps in the direction of bringing back the black money, a new hope has been generated that the infrastructure development in India will receive a new boost.
Fight To Bring Back The Black Money
The issue of black money was being raised in the corridors of power for quite a few years, but regretfully no one was willing to do anything about the same. While the opposition kept pressuring the government, the government seemed unwilling to work on the problem in a serious manner. In fact, quite a few ministers issued statements that mocked the very idea and even dismissed the very existence of black money. The trend changed only after sensing the growing distrust and unrest among the general public due to the high levels of corruption and failing infrastructure, the previous government at the centre promised to initiate the process of bringing the black money back. However, it was only after the formation of the new government under PM Modi that actual measures were taken in this direction.
A Ray Of Hope
A whooping amount of $2 trillion is stashed away in the form of black money in various overseas countries. With the government already having received the details about nearly 24,000 dubious transactions, there is new hope that this money will make its way home, even if it might take some time to accomplish the same. This information is being currently analyzed by the Income Tax Department and the Ministry of Finance So far New Zealand, Spain UK, Sweden and Denmark have been forthcoming with the details of Indian black money held in their banks. Switzerland has offered extremely limited information even though a major chunk of the total black money is deposited in the various banks there. Despite the significantly insufficient details that have been received, it is being considered as a major step forward in the direction of getting back the amount that can help India become an economic superpower. In fact, talks are done about how the money recovered can be utilized for the growth and development in various sectors to help boost the Indian economy in a significant manner.
The Gujarat Model
Prime Minister Narendra Modi has time and again stressed on the importance of ensuring world class infrastructure development in India for better growth and development across other sectors. One of the primary reasons behind his phenomenal success during his long tenure as the Gujarat CM, was the focus on developing the infrastructure of the state at an international level. The results of his efforts are there to see for all, with Gujarat having become the most prosperous Indian state in every respect. Now with Modi heading the national government people are expecting a similar growth rate and prosperity across the country. Most people even have the opinion that recovered black money should be used in infrastructure growth and development as it would be the ideal way to put India back on the track of development and progress.
Black Money In Infrastructure Development
Poor infrastructure has often been cited as the primary reason behind the stagnant development of the nation. The lack of proper roads and bridges, the shortage of homes for a large percentage of the population and the non-availability of basic amenities such as clean drinking water and sufficient electricity are just some areas which can be improved in a significant manner with well-planned and proper infrastructure development. By using the recovered fund in these development tasks, the government can not only create countless job opportunities for the millions of unemployed people but also help in raising the standard of living of the common man. Most importantly, investing the black money in infrastructure development will also have deep impact on the real estate mafia that is causing unchecked price rise in the real estate sector. This will not only check the influx of unlimited black money in the construction and development industry but will also make the homes and living spaces within the financial reach of the common people.
A Long Way To Tread
However, before the dreams of making India at par with the most developed nations across the globe in terms of availability of proper infrastructure, there are a lot of steps that need to be taken. The most important of these are of course ensuring the complete recovery of the money that has been illegally shipped away and stored in various banks across the world. It is also important to make the necessary changes and amendments in the property laws and regulations to ensure that the money received actually utilized for proper development purposes. The government also needs work on creating strategies and plans that would ensure that the money is used as intended. Issuing bearer bonds for infrastructure development, of various denominations and in multiple currencies can be a good start in this direction. In addition, there is also a need to introduce a greater transparency and reliability in the various process related with investment in the infrastructure development process.
With the PM having promised complete recovery of the black money, the people across the nation are eagerly awaiting the revamp of the sociol-economic scenario. The hopes have further been raised with at least some information having been come in from foreign nations in this respect, when none was being offered only a year back. What remains to be seen though is how the funds are utilized to provide better facilities to a nation that has for long been suppress by the corruption and bureaucratic idiosyncrasies of the selfish politicians.