By Anupam Manur and Manasa Venkataraman
An Account of Unaccounted Income is a discussion document that takes an in-depth look at India’s unaccounted economy. It is important to distinguish between different categories of unaccounted economy, each of which has different method of functioning and different implications for the economy. The unaccounted economy is a combination of the illegal economy, unreported economy, unrecorded economy and finally, the informal economy.
This discussion document focuses on the size of the unaccounted economy and the processes involved in generating and utilising unaccounted income. It dwells on select sectors of the economy, which are more vulnerable to unaccounted income, such as real estate, education, mining, trade misinvoicing and illicit financial flows, and gold. Finally, the document looks at corruption and malpractices in government contracts and schemes.tdd-unaccounted-income-am-mv-2016-05-29-nov1-pdf