India ranks 5th in illicit financial outflows

India ranks fifth globally among 127 developing countries for illicit financial outflows, according to a report released by the Global Financial Integrity (GFI).

The report 'Illicit Financial Flows from Developing Countries: 2002-2006' estimates the total illegal capital flight from developing countries to be as high as $1 trillion per year.

In 2006 around $10 were lost due to illicit outflows on every $1 received as official development assistance (ODA), it said in a statement released through Asianet.

"This massive loss of assets is the greatest impediment to economic development and poverty alleviation and should be a concern for all nations," Raymond Baker, director GFI said.

According to the report, the total illicit financial outflows from India rose to $27.3 billion per year during the period 2002-2006.

The illegal outflows involve activities such as corruption (bribery and embezzlement of national wealth), proceeds of illicit business that becomes illicit when transported across borders in violation of laws and regulatory frameworks.