ECONOMIC GROWTH AND BLACK MARKETING

ECONOMIC GROWTHAn increase in the capacity of an

economy to produce goods and services, compared from one period of time to another.

It can be measured in nominal terms or in real terms.Increase in

Demand• Lower interest

rates & income tax• Increased wages,

government spending & consumer

confidence

Increase in Supply• Increased capital,

working population, Labour productivity

• Technological improvements

CAUSES

IMPORTANCEReduce PovertyReduces

UnemploymentBudget deficitsLiving Standards

In the FY 2014 –

2015 economic growth of India was 7.4% and in 2015 – 2016, we expect to have a growth of 8.1 – 8.5%. Inflation decreased by 6%. CAD decreased by 1%MAJOR OBSTACLES TO INDIA’S

GROWTH• Infrastructure Shortages• Large Fiscal Deficit• Restrictive Labor Regulations• Unreformed Financial Sector

BLACK MARKETINGA black market or underground

economy is the market in which goods or services are traded illegally.

Common black markets are - Drugs (Both Legal & Illegal),Slave Labor, Animals (Particularly Furs and Exotic creatures), Human Organs and Stolen Goods.

Black market is estimated to be as much as 36 percent of the GDP of developing nations and 13 percent of developed countries’ GDP

causes of black market: When the supply of goods is not equal

to the demands Increasing level of poverty and

unemployment There is no controls on licensing

system Due to lacking of education and

awarenessMeasurement

Direct Approach• Questionnaire & Survey• Employment analysis

Indirect Approach• GDP and expenditure analysis• Energy conception analysis

Recommendations for legalization Simplify/Rationalize tax lawsConsolidating the public sector and

making administrations more efficientStringent laws to control and monitorCreation of awareness among students

on the evil of black marketing

THANK YOU