Dr Arun Kumar, Former Economics Prof at JNU and currently the Malcolm S Adiseshiah Chair Professor at the Institute of Social Sciences, New Delhi, delivered a lecture on, ‘Missing Dimension of Macro Policy-Making in India: The Black Economy’ at Indian School of Business and Finance (ISBF).
Taking demonetisation as an example, he elaborated on various counter-measures taken by authorities around the globe to include the missing dimension. He busted the misconceptions that are prevalent with regard to the robust back-door economy, the black economy.
Giving the reference of his book, The Black Economy in India , he said stated 62 per cent of the economy is not accounted for in policy-making, as it operates through channels not recorded. His other authored work includes, Indian Economy since Independence: Persisting Colonial Disruption ’ (2013), Understanding Black Economy and Black Money in India: An Enquiry into Causes, Consequences and Remedies , Aleph Publication (2017). His latest book, titled, Ground Scorching Tax was released in February this year. He has also been awarded the Ricardo Prize in Economics by IIES of UNAM, Mexico in 2013.
The effect of black money
Prof Arun Kumar said, “The black economy not only impacts the overall economy but it also affects other crucial sectors, like education and health. The bigger the black economy, lower the money available for the government to disburse for education, which would affect the quality of education, hence promoting deteriorating mediocrity among youth.”
Dr Jitin Chadha, Founder and Director, ISBF, said, “We are glad to have Prof Arun Kumar as our guest lecture today. His deep knowledge and understanding of economy and policy-making have helped not only the students, but also the faculty of ISBF. We have been fortunate to have such insights into policy-making and prevalence of alternative economies and their functioning.”