Friday, November 11, 2011

Something Odd in India's Export Surge

The practice of under-invoicing of exports is common among exporters. Now they are filtering back illegal money parked overseas by using the simple device of over-invoicing exports.

By some accounts, as much as US$40 billion may have been sent back to India over the past year. It could signal fear that a rash of new or improved tax treaties signed with recognized tax havens may lead to their exposure or prosecution. For instance, an improved double taxation treaty with Switzerland came into force in April. Likewise, many people were rattled when Germany last year gave India the names of 26 Indians with secret accounts in LGT Bank in Liechtenstein.

Another SCAM on rupee depreciation, exports boom?

If exports had indeed recorded such robust growth, what about the performance of core industries? After all, if we have done exceedingly well in exports, our core industries too should have done equally well, if not better.

1 comment:

Non Carborundum said...

Fudging all around. As I keep saying, India's real GDP growth rate is negative.