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Estimates of the unreported economy in India

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  • Gupta, Poonam
  • Gupta, Sanjeev

Abstract

This paper presents estimates of India's unofficial economy on a yearly basis for the period 1967 to 1978. These estimates implicitly revise the GNP, per capita and other related statistics for this period. The technique employed has been recently used to determine the size of the unreported economies in U.S.A. and Canada. The results indicate that the unreported activity as a proportion of official GNP has grown from 9.5 per cent in 1967 to nearly 49 per cent by 1978. High taxes have contributed significantly to the growth of the unofficial economy. A 1 per cent increase in overall taxes leads to more than 3 per cent increase in the unofficial economy relative to the official economy.

Suggested Citation

  • Gupta, Poonam & Gupta, Sanjeev, 1981. "Estimates of the unreported economy in India," Kiel Working Papers 130, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:130
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    References listed on IDEAS

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    1. Edgar L. Feige, 1979. "How Big Is the Irregular Economy?," Challenge, Taylor & Francis Journals, vol. 22(5), pages 5-13, November.
    2. Peter M. Gutmann, 1979. "Statistical Illusions, Mistaken Policies," Challenge, Taylor & Francis Journals, vol. 22(5), pages 14-17, November.
    3. Sanjeev Gupta, 1980. "An application of the monetary approach to black market exchange rates," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 116(2), pages 235-252, June.
    4. Robert D. Laurent, 1979. "Currency and the subterranean economy," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 3(Mar), pages 3-6.
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    1. Gupta, Sanjeev, 1982. "Causal relationship between domestic credit and international reserves: The experience of developing countries," Kiel Working Papers 139, Kiel Institute for the World Economy (IfW Kiel).

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