The Modiji Regime’s Struggle with Black Money: Analyzing Efforts and Challenges
India’s efforts to combat black money have been a topic of debate and scrutiny since the Modi regime came to power. While some assert that the government has managed to address the issue partially, others question the effectiveness of its measures. This article delves into the strategies employed by the Modi government to recover black money and highlights the challenges they face.
Evaluation of the Modi Government's Efforts Against Black Money
The Modi government claimed that it would bring back 195 lakh crore of black money that was stashed overseas. However, according to available reports, they have found evidence of less than 50,000 crore rupees so far. This disparity has raised doubts about the government's effectiveness and sincerity in tackling the issue.
Several critics argue that the political parties themselves are beneficiaries of black money. For instance, they may have brought some of it back to India as donations. Apart from these donations, there is no substantial evidence to support the claim that more than a nominal amount of black money has been recovered.
Struggles and Challenges in Recovering Black Money
The Modi regime has taken several steps to combat black money, but the results have been limited. One of the main challenges is the reluctance of black money holders to move their funds into legal channels due to the fear of exposure.
Despite the demonetization drive and the implementation of measures like electoral bonds, there has been no significant improvement. For instance, the demonetization of high-value currency notes aimed to force individuals and entities with black money to deposit it in bank accounts or exchange it for smaller denominations. However, it turned out to be a temporary measure rather than a long-term solution.
Ineffectiveness of the Current Strategy
From the available information, it is evident that the Modi government's efforts to bring back black money have not been visible. Many argue that it is a day-dream to expect such a massive recovery in such a short time. The current strategy seems doomed from the start.
The effectiveness of measures like electoral bonds, which allow donors to contribute anonymously to political parties, was questioned. The rules for foreign institutional investors (FIIs) to follow participatory notes norms also failed to yield substantial results. These measures, while well-intentioned, have not shown significant success in recovering black money.
The Role of International Banking
Another significant obstacle in the fight against black money is the international banking system. Many black money holders have hidden their funds in countries with stringent financial regulations, such as Switzerland. However, these countries are under mounting pressure from their allies, including the United States and European nations, to share information about their international clients.
As a result, black money holders had plenty of time to transfer their funds to less regulated and lawless jurisdictions, such as countries in South America or Africa. Given the amount of time and the lack of immediate action, it is surprising if any significant recovery has been made.
Conclusion
The Modi government's efforts against black money, while well-intentioned, have shown limited success. The challenges lie in both the international financial system's complexity and the reluctance of black money holders to surrender their ill-gotten gains. Unless there is a fundamental shift in the approach and more proactive measures, the struggle against black money may continue to be an elusive goal.