Abstract: - The black economy is a hidden and untraceable sector of the economy, and therefore totally untaxable. It remains unreported and unmeasured by the taxation system of the country. India’s black economy accounts for approximately sixty-two percent of the Gross Domestic Product (GDP) of the country which is a staggering ninety-three lakh crore rupees. The annual rate of growth of black money in our country is quite higher than the annual growth-rate of GDP. The reasons for generation of black money in India are the high taxes and duties, corruption, quota system, price controls, inflation, real estate transactions, and others which is steadily eating up India’s fair income. This is making the country’s economic system weaker. Parallel economy is putting a burden on honest tax payers, harming the integrity of the country, and the Government has never enough revenue for the development of infrastructure and bettering the welfare schemes. Voluntary Disclosure of Income Scheme (VDIS), Income Disclosure Scheme (IDS), Demonetisation, Permanent Account Number (PAN), digital payment, and several other schemes were introduced to curb the black economy in India. The schemes had their own pros and cons. Nevertheless, the Government of India has realised the importance of curbing the black economy so that the black money can be channelized to the mainstream which will improve India’s GDP, per capita income, and help in providing a better standard of living to the citizens of the country.Keywords: - Black Economy, Black Money, Gross Domestic Product (GDP), Voluntary Disclosure of Income Scheme (VDIS), Income Disclosure Scheme (IDS), Demonetization, Permanent Account Number (PAN), Goods and Services Tax (GST)