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Digitization Will Curb India’s Shadow Economy

Digitization Will Curb India’s Shadow EconomyDigitization Will Curb India’s Shadow Economy

Pitching for rapid movement towards digitization of India’s economy, Union Minister Arjun Ram Meghwal Sunday said the government’s digital initiative is crucial to curb the black market, PTI reported. “In this country, 22-26% is shadow economy (i.e. illicit economic activities like black market transactions and undeclared income existing alongside the official economy),” the minister of state for finance said in Mumbai. The minister, addressing the ‘Digital India Summit Role of Cooperative Banks in Adopting and Advancing the Prime Minister’s Flagship Digital India Program’, said, “This is a large percentage and it is not good for a nation. As and when shadow economy is constrained the gross domestic product of the country will grow.” Noting post-demonetization of high value currency notes, the country has rapidly moved towards digitization which has helped keep a check on the shadow economy, Meghwal said ‘digital India’ is a necessary initiative to ‘hurt’ the illicit economic activities. “When we have a large shadow economy, digital India will help curb it and we will be able to account for the illicit transactions. This will result in growth of consumption, investments and export and as a result GDP will also grow.”

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