Leads to suboptimal utilization of resources implying a lower [GDP] growth rate in long-run Since corruption involves black money which can be easily caught if it is used for re-investment [for say, setting up a factory], black money primarily goes towards consumption and this leads to reversal of investment priority(roughly 70% of investment goes directly/indirectly to sustain luxury sector in India) Hoarders and Profiteers bribes the corrupt incumbent to manipulate government [to hold/release necessary goods like food grains at their will] leading to artificial scarcity for goods [and earns huge profit by selling goods at artificially inflated prices] Most of these offshore banks charge service fee [which can be as high as 2%] of the deposits, given that India’s off-shore deposits are…