Export Myths

India's exports to the Bahamas, a tax haven, surged to $2.2 billion in 2010-11 from a modest $22 million in 2008-09. The magical growth raises doubts over the veracity of the figures and raises the possibility that inflated exports point to other shady activities. The directorate of revenue intelligence, the income-tax department and the Reserve Bank of India (RBI) should investigate the matter, with alacrity. Recent research findings by Kotak Institutional Securities signalled money laundering through the trade route as there was a wide difference between the export data from company reports and official export data for 2010-11.

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