The government is finally waking to the menace posed by illicit money flows from India to foreign banks and its inability to take meaningful steps.
Finance minister Pranab Mukherjee is pressing for cooperation between countries at the Group of Twenty finance ministers’ meeting in unearthing ill-gotten wealth stashed in overseas banks.
Help may be at hand as there is growing concern at such flows across countries, rich and poor.
This, however, should also lead to stern steps in India to reduce the problem. But far from checking the economic factors that lead to the generation of black money, retrograde ideas continue to remain in currency. Immunity after payment of hefty taxes—effectively turning black money into white—is one such idea. Letting tax evaders have an easy time erodes the country’s credibility abroad. Tough steps at home are equally important as soliciting help abroad.