Rafa says:

As long as money is in India, it is OK whether black or white and it will serve the oinoemcc development. The difference between black and white money is only payment of taxes to government for its expenses. If government is facing shortage of funds, it would jack up the tax rates to extract needed funds anyhow from its means of collection. There is also a big question that who is enjoying these government funds.As the requirement of government funds are reducing relative to total economy and government shedding unrelated responsibilities other than defense, home, foreign affairs, environment, social justice and science & technology, the tax collection should drastically reduce in future.The meaning of word Excise’ is to to cut’. Excise tax is imposed by colonial rulers to cut local production by making them costly to the purchaser / exporter. Is it required to cut production in this age by imposing taxes?Of late India is showing enormous financial strength compared other developed countries. Rupee (INR) is stable compared to Dollar/ Euro and the Indian interest rates are much higher. So naturally foreign money whether owned by Indians / others will flow to India to reap better appreciation of their investments. This is happening despite high inflation in India. That means, INR is kept undervalued by the policy makers to appease exporters lobby by building up foreign currency reserves. If INR is not allowed to find its true value, interest rates and inflation are bound to go up to compensate the artificial intervention.India should attract huge foreign funds by issuing treasury bonds (in INR) at attractive interest rates to finance its infrastructure and upgrade living standards of people. There is no need of building huge foreign exchange reserves when Indian industry, service sector and agriculture are showing better competitiveness compared to developed countries. China is building up huge FE reserves because it has already huge production base bigger than its local consumption lest it would face political turmoil’s. India need not repeat the mistakes of China which are done for political reasons.