An Empirical Study: The Impact of Financial Crime on the Indian Economy

Abstract

Financial crime and money laundering has been the focus area globally for several years. It not only facilitates various predicate crimes but also has far-reaching socio-economic consequences for any country and threatens the integrity of the financial system. The more transition is there from the study of a developed to a developing country, the more leakages will be witnessed in-terms of country’s financial performance and increase in overall financial crime rate of that country. This poses a threat to the global economy and its security and India is not insulated from this threat. This empirical study aims to determine the effect of financial crime on the Indian economy. The socio-economic parameters of India from 2011 to 2021. Pearson Correlation Coefficient calculator is used to ascertain the relationship between the financial crime activities and the key parameters of the Indian economy. The result of the study is based on the socio-economic parameters of India and the four-hypothesis testing on the relationship between the financial crime activities and the key parameters of the Indian economy. All the four hypotheses are rejected and concluded that financial crime in India do not have any adverse impact on the Indian economy.