Kumar: Without the Black Economy, India's GDP Would Be $26 Trillion
Prof. Arun Kumar · Why Is No One Talking About India's Unorganised Sector? Economist Arun Kumar Explains | Neon Show · Sep 7, 2024 · at 41:56
Economist Professor Arun Kumar discusses research showing how systemic corruption and low investment productivity have severely curtailed India's compounding GDP growth.
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“So I've shown in a paper in 2005, That because of the low investment productivity, because you are doing this digging holes and filling holes, the low investment productivity means India has been losing five percent rate of growth since the mid seventies when the black economy became more than 10%. So if you add five percent every year from the mid seventies, today, Indian economy would be at least eight times larger. So instead of, you know, three and a half trillion, you'd be about 26 trillion. You'd be larger than the US economy.”
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