In the real estate market in India, corruption and use of BMM is particularly bad. According to some sources, nearly forty percent of real estate developers participate in unethical monetary practices, demanding BMM from potential buyers. This severely undermines the system and also creates an atmosphere of distrust-- people are unwilling to invest heavily in real estate out of fear of corruption. BMM is also present in other sectors; the real estate market is merely one example of an industry that invests heavily in the practice.
The circulation of black money has severely harmed the Indian economy by forcing non-corrupt officials to divert important resources to dealing with the issue-- resources that might be spent better in other places, like creating programs that would help alleviate poverty in the rural parts of the country. In addition to diverting resources, BMM contributes nothing in the form of taxes to the economy, and throws the careful balance of the investment system off-kilter. There are a variety of other detrimental effects of black money on the Indian economy, but essentially the outcome is the same: the prevalence of black money in the Indian economy must be reduced or eliminated altogether.
For many years, I have struggled with this issue: there have been times where I was rushed or under stress and succumbed to a seller’s pressure to pay for a good or service in cash. I recognize my part in the problem of the black money market, but I also recognize that until the system is changed, it is unrealistic to expect the average Indian citizen-- who may or may not even be aware of the ills he or she is contributing to-- to go out of his or her way to avoid supporting the black money system.
The solution to the problem is one that I have considered for a long time: it involves the creation of a brand named “Pure White.” The business model will be similar to the RED initiative that was designed to support the fight against AIDS-- essentially, the brand will form partnerships with other brands, who will sell branded merchandise. That branded merchandise will help to fund the “Pure White” program. The program will partner with the important real estate developers, Indian retail brands, and other not-for-profit organizations to encourage proper business practices and support the use of clean money only. As a next step I already called my lawyers and got the idea about the expense for registering a trademark for the brand. I will be talking to the professors in the program to get more guidance on how to approach this project in the most efficient way possible.
Today, more and more people are purchasing economically- and environmentally-responsible goods; I feel that many modern consumers have a keen sense of ethical and moral responsibility regarding the goods that they consume, and this brand will fill a very specific niche. Companies and brands participating in the program will be forced to report all their transactions and sales properly and correctly to the Indian government. While this may seem to be a disincentive to participate in the program, the positive press and participation in the program will encourage patronage of participating brands. To ensure that all protocols and government regulations are followed, the brand will also associate itself closely with the Indian government, making the program easy to follow for participating businesses. This will also benefit the US economy as well, as India is one of the largest and fastest-growing markets in the world-- it would certainly behoove the United States to support a stable, corruption-free market in the Indian subcontinent.
The problem of black market money is not an insurmountable one in India, but the reduction of BMM will do nothing but good things for the Indian economy. Because India is growing so rapidly, reducing corruption and encouraging faith in the Indian economy and currency.