Notably India's defense budget is less than USD 50 billion. China tops the list with USD 139 billion average outflow of illicit finances per annum, followed by Russia (USD 104 billion per annum) and Mexico (USD 52.8 billion per annum), according to the annual report released by Global Financial Integrity (GFI), a Washington-based research and advisory organization.

The illegal capital outflows stem from tax evasion, crime, corruption and other illicit activity, the report said, according to which a record USD 1.1 trillion flowed illicitly out of developing and emerging economies in 2013, the latest year for which data is available. In all, during this decade-long period of 2004-2014.

Titled 'Illicit Financial Flows from Developing Countries: 2004-2013', the study shows that illicit financial flows first surpassed USD 1 trillion in 2011 and have grown to USD 1.1 trillion in 2013, marking a dramatic increase from 2004, when illicit outflows totaled just USD 465.3 billion.

This study clearly demonstrates that illicit financial flows are the most damaging economic problem faced by the world's developing and emerging economies, said GFI President Raymond Baker, a longtime authority on financial crime. Noting that Sustainable Development Goals (SDGs) calls on countries to significantly reduce illicit financial flows by 2030, the report said the international community has not yet agreed on goal indicators.

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