The revelations made by Panama Papers and likes in the past have established the fact that a huge chunk of black money has been stashed abroad. How this money gets generated and manages to get pass the authorities in India? Can you identify the modus operandi of such transactions?
Panama Paper leaks bring more evidences to disclose the open secret regarding black money. All that money which is not legal gets generate by different methods-
- Illegal Activities– money generated from illegal activity like drug trafficking, arms deal, and human trafficking are three biggest areas to contribute black money.
- Tax avoidance– high net worth individuals use different methods to escape paying tax. It makes large chunk of black money.
- Tax haven– round tripling through tax haven places like Mauritius has created huge amount of black money in India. Big firms who use taxation policy gap use different tricks to escape the tax which contributes for black money.
- Illegal trade– Gold, film industry, or real estate is vulnerable sectors to generate black money.
- Poor taxation policy and international cooperation also help to generate black money.
The money get pass from India as it transferred though diff modes like Hawala transactions, round tripling through tax haven places, use of financial tools like P notes, fraud companies and so on.
There are different players operate in black money transactions
Banking system– Recent case of BOB has opened a secret that more than 6000 crore Rs was illegal transferred from India to outside.
Shell companies- are key players who plan and invest money in tax haven nations and to make transfer secretive and safe.
Political support– Political system is also part of it as many leaders of different parties are blamed to have huge black money in foreign banks.
Foreign firms– who park the money like Swiss banks which are known for privacy and safety.
It is expected that G 20 resolution and black money bill 2015 will ensure concrete action on right direction.
In the drought affected regions of the country, the lack of irrigation infrastructure is a major cause of worry. Identify these areas in India and suggest suitable irrigation techniques along with their advantages and limitations.
Today India has around 45% irrigated area by all means. Indian drought prone areas are West Rajasthan region, Bundelkhand and Marathwada region, Vidharabha region in Maharashtra, part of Karnataka, and other parts of plateau region. In these areas major irrigation infrastructure challenges specific to regions
- Canal water– this is mainly available in Rajasthan, north Indian states, part of River beds in Easter region.
Help to grow cash crops which need more water.
Easy to maintain and not much labour cost involve.
Not technical management required.
Huge water wastage though evaporation and seepage
Poor water management and poor reach to last mile
Salinity problem increases over time
- Well and tube well irrigation– Mainly get practice in Plateau region like Orissha, South Rajasthan, Maharashtra, Karnataka, and so on.
As per need it can be establish near to field
Well suited where canals are not available
High initial cost
Huge depletion of ground water without storing any mechanism to recharge it
It is a major region that people started avoiding tank system of community irrigation
- Tank Irrigation– it is majority found in Tamil Nadu, Karnataka, AP, and Talangana.
Advantage– old traditional system of surface water collection
Suits to local area need and promote community management system of water
Good to recharge ground water
High evaporation loss of water
Water not available throughout the year to sustain corps
To overcome it Irrigation paradigm need a shift towards
- Push for micro irrigation under government subsidy plan which has highly water efficient.
- Shift in existing water intensive Cropping pattern
- Ridge to valley treatment- under MGNREGA of IWMP programme to ensure land areas development with maximum water use efficiency.
- People participation- in water distribution, rehabilitating local water system like tanks, and ensuring micro management of water distribution to avoid any water wastage.