India 5th largest exporter of illicit money between 2002-11

India ranked fifth largest exporter of illicit money between 2002-2011, with a total of $343.04 billion, and in 2011 it was placed third when $84.93 billion was sent abroad, according to a new report.

Crime, corruption and tax evasion drained $946.7 billion from the developing world in 2011, up more than 13.7 per cent from 2010 — when illicit financial outflows totalled $832.4 billion, according to the report titled 'Illicit Financial Flows from Developing Countries: 2002-2011'.

The findings — which peg cumulative illicit financial outflows from developing countries at $5.9 trillion between 2002 and 2011 — are part of a new study published yesterday by Global Financial Integrity (GFI), a Washington-based research and advocacy organisation.

"As the world economy sputters along in the wake of the global financial crisis, the illicit underworld is thriving—siphoning more and more money from developing countries each year," said GFI president Raymond Baker.

"Anonymous shell companies, tax haven secrecy, and trade- based money laundering techniques drained nearly a trillion dollars from the world's poorest in 2011, at a time when rich and poor nations alike are struggling to spur economic growth," he said.

The $946.7 billion of illicit outflows lost in 2011 is a 13.7 per cent uptick from 2010 — which saw developing countries hemorrhage $832.4 billion — and a dramatic increase from 2002, when illicit outflows totaled just $270.3 billion.

The study estimates the developing world lost a total of $5.9 trillion over the decade spanning 2002 through 2011.

The report said six of the top 15 exporters of illicit capital are in Asia (China, Malaysia, India, Indonesia, Thailand and the Philippines), two are in Africa (Nigeria and South Africa), four in Europe (Russia, Belarus, Poland and Serbia), two are in the Western Hemisphere (Mexico and Brazil) and one is in the MENA region (Iraq).

In the last 10 years, China topped the list with $1.08 trillion in black money outflow, followed by Russia ($880.96 billion), Mexico ($461.86 billion) and Malaysia ($370.38 billion).

"It's extremely troubling to note just how fast illicit flows are growing," said GFI Chief Economist Dev Kar.

"Over the past decade, illicit outflows from developing countries increased by 10.2 per cent each year in real terms — significantly outpacing GDP growth. This underscores the urgency with which policymakers should address illicit financial flows," Kar said.

Post new comment

E-mail ID will not be published
This question is for testing whether you are a human visitor and to prevent automated spam submissions.


  • The budget is sound in logic; the market is too clever by half

    For a man derided by former finance minister P Chidambaram for his knowledge of economics as only sufficient to be scribbled on the back of a postage


Stay informed on our latest news!


GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India


Arun Nigavekar

Why higher education needs innovation

India is such a great country that it creates complexity ...

Zehra Naqvi

We must overcome the fear of death

It is the biggest irony that the only thing that’s ...

Dharmendra Khandal

Jawai leopards and locals can coexist peacefully

At first glance, the Jawai landscape seems like a large ...


William D. Green

Chairman & CEO, Accenture