Rise in Exports and black money

Recently there has been an upsurge in the exports of India and that too quite unexpectedly in the global environment of slowdown in our principal export zones. We all have felt good by looking at around 30% increase in exports, but the happiness may be ephemeral.

For quite some time Govt. is claiming of tracking down and chasing black money. But nothing worthwhile appears to make news. Meanwhile the latest projection of deposits by Indians in Swiss bank is again less than the previous estimate. Are we seeing roundtripping of the black money through inflated export earnings. This can be a dual edged sword to gain tax concessions as well as bring back the black money stashed abroad in the tax heavens. See this in the light of current swift rise in the real estate prices. Some can say that imports are also doing good and our exports especially in gems depend on imports. But the fact is that most of the import growth is due to rise in the petroleum prices while the export growth is diversified.