Washington: India witnessed illicit financial outflows of a staggering $128 billion during the 10 years to 2009, making it one of the biggest victims of illicit money among developing nations, says a report.

The startling data come at a time when the country is aggressively exploring ways to fight the black money menace.

The study by Washington-based research group Global Financial Integrity (GFI) showed that the developing world lost a whopping $8.44 trillion over the decade ended 2009.

GFI's report focuses on the amount of money flowing out of developing economies via crime, corruption and tax evasion.

In the list of 20 biggest victims of illicit financial flows over the decade, which is topped by neighbouring China, India has been ranked at the 15th spot.
With an illicit fund flow of $2.74 trillion, China is at the top followed by Mexico ($504 billion) and Russia ($501 billion) at second and third positions, respectively.

"Developing countries lost $903 billion in illicit financial outflows in 2009 despite the massive slowdown in economic activity which rocked world markets in late 2008," GFI said in a statement.

The findings are based on amount of illegal capital flowing out of 157 different developing countries over the 10-year period from 2000 through 2009.

"While $903 billion marks a drop from the $1.55 trillion that illicitly flowed out of the developing world in 2008, the study finds the decrease is almost entirely attributable to the global financial crisis rather than any governance improvements or economic reforms," GFI said.

Read the report