'It’s not just bad guys who hold large amounts of cash in India. The informal or underground economy comprises an estimated 45% of GDP and employs 80% of the workforce. These enterprises can’t afford to comply with onerous government regulations, so they carry out all transactions in cash, even though their activities are otherwise legal. Informal lenders who finance such businesses also hold large amounts of cash.'
'Underground activity continues to grow faster than the economy as a whole. In an interview with Bloomberg a year ago, Finance Minister Arun Jaitley called himself a “great supporter” of the technically illegal enterprises. “The informal sector generates more jobs than the organized industry,” he said.'
Modi’s Money Mess
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