IMPACT OF BLACK

MARKETING ON
BUSINESS INDUSTRY
BY : AISHWARYA AGGARWAL ( 0181BBA002 )
KUNAL CHANCHLANI ( 0181BBA018 )
INTRODUCTION TO
BLACK MARKETS
• A black market is an economic activity that takes place outside government-sanctioned
channels. Black market transactions usually occur “under the table” to let participants avoid
government price control or taxes. The goods and services offered in a black market can be
illegal, meaning their purchase and sale are prohibited by law, or they can be legal but
transacted to avoid taxes.
• Black markets are also known as shadow markets or underground markets.
• The major products of these market are drugs, Alcohol, Prostitution, Human organs,
petroleum, coal etc.
• Products black marketed in COVID : Oxygen cylinders, Concentrators, Medicines etc.
HOW DOES THE
BLACK MARKET WORK?
• There are a variety of black markets and all of them work in different
ways. A black market can be a physical market where two individuals meet
to exchange illegal goods, for example, a drug transaction on a street
corner.
• A black market can also exist online, such as on the dark web, where
individuals communicate to exchange goods and payments are made in
digital currencies.
REASONS FOR
BLACK MARKET ?
• People want to exchange goods or services that are prohibited by
governments. For Eg. Drugs.
• Black markets also arise when people don't want to pay taxes on the
transaction for legal or illegal goods or services. For Eg. Alcohol
• Some black markets exist simply because people don't realize there are
laws they aren't following, such as bartering and not reporting the taxable
value of the transaction.
• Decrease in supply and shift in demand causes the the black market.
IMPACT OF
BLACK MARKET ?
• There are two characteristics that describe the impact of black market on
the economy are :
1. First, some aspect of it is illegal. It may provide goods or services that
are prohibited by law. It could provide legal goods or services that avoid
taxes. Often, it does both.
2. Second, cash is preferred. That way, payments avoid detection by law
enforcement, bank compliance officers, or tax authorities. 
TYPES OF
BLACK MARKET ?
1. Human trafficking is a very large black market. Human trafficking
moves people into forced labour, prostitution, child armies, and the
market for human organs. 
2. Other black markets include illegal gambling, the illegal wildlife trade,
and illegal mining, fishing, and logging.
3. In the financial context, the biggest black market exists for currencies in
nations with strict currency controls.
PREVALING LAWS ON
BLACK MARKET ?
• Black-marketing has become a global problem. All most each and every country
faces problems caused by it. In the process, various laws enacted by Parliament :
1. The Anti-Corruption Laws (Amendment) Act, 1964,
2. The Code of Criminal Procedure, 1898
3. The Foreign Exchange Regulation (Amendment) Act, 1964,
4. The Prevention of Food Adulteration (Amendment) Act, 1964,
5. The Wealth tax (Amendment) Act. 1964.
ADVANTAGES & DIS ADVANTAGES OF
BLACK MARKET ?
• Advantages :
• The Illegal sales of human organs or drugs. For example, the sale of human kidneys or some
medicinal drugs have aided in saving some lives.
• Goods and services are sold at a cheaper price.

• Dis Advantages :
• There is an increased probability of buying fake or counterfeit goods and products with
no warrantee.
• There is a high chance defrauding and scamming buyers in the black market.
DIFFERENCE BETWEEN
BLACK & GREY MARKETS ?
Black White
Markets Markets

Products are illegal. Eg : Drugs Products are legal. Eg: Medicines

Channel of trade is illegal. Channel of trade is legal.

Goods traded here are smuggled into All trading takes places according to
the country under the table. rules and regulations.
COVID IN
BLACK MARKET ?
• Black markets are not only responsive to the economic shock, but are in
many ways deeply influencing how we experience it and the pandemic
itself. The intersections between COVID-19 and black markets are
enormously complex.
• Recent examples :
 Three men were arrested from west Delhi's for allegedly black marketing oxygen
concentrators, police said on Saturday. The accused were selling the oxygen
concentrators at Rs 1,30,000 per piece despite the fact that the market value of per piece
is around Rs 30,000 to Rs 50,000,
THANKYOU