'Smuggling, counterfeiting help generate black money'

'Smuggling, counterfeiting help generate black money' New Delhi: Smuggling and counterfeiting are major challenges facing the industry today and such activities lead to generation of black money, Minister of State for Agriculture Tariq Anwar said on Saturday.

"Black money is a menace to any society. This menace is helped by smuggling and counterfeiting, which is a challenge before the industry as well as the government," Anwar said while launching a book here.

In his inaugural address, Anwar said the general public should also be made aware that black money is being generated from even day-to-day activities.

Quoting from the book 'Black Money', he said this book tries to explain to the reader how unknowingly a common man helps in the generating of black money by not asking for a valid bill while making a purchase.

Brij Bhardwaj, the author of the book, said that his aim is not to find out how black money is parked in banks, but on how it is being generated.

"I have tried to explain to the reader how counterfeit and smuggling are growing world-wide and are hurting national economies including India and in turn financing anti-national activities like terrorism, etc," he added.

According to a report by US-based research and advocacy organisation Global Financial Integrity (GFI), India lost a whopping USD 123 billion in black money during 2001-2010.

The study, the 'Illicit Financial Flows from Developing Countries: 2001-2010, added that India is the eighth largest victim of black money losses. It is also the only South Asian country to figure in the top 20 list of such nations.

A study brought out by industry body FICCI and Committee Against Smuggling and Counterfeiting Activities Destroying the Economy (CASCADE) estimated that India looses Rs 26,190 crore in tax losses annually due to smuggling and counterfeiting.

The overall estimate of annual sales loss to industry is put at Rs 1,00,000 crore, the report added.

PTI