How big is the black economy?
Existing studies, starting from an NIPFP study in the mid-1980s, have shown that the extent of black money has been growing over a period of time. One might attribute this to the nature of the growth of the economy itself, which has been uneven. Indeed, the growth of the service sector (such as retail trade) could have translated into a substantial rise in the black money. At the same time, it is also important to appreciate the role of institutions, technology and civil society that are contributing to increasing transparency in the system.