Black money is unaccounted-for money received by people. A number of illegal sources are responsible for creating black money. A number of estimates about black money in India are available. According to World-bank, black money is 50% of GDP of India. According to the late Rajiv Gandhi, only 15% of money on social welfare programmes is spent and all other is transformed in black money. This problem demands discussion.
In absence of control of black money the process of economic development can not be made dynamic.
More importantly it will enable to derive the benefits of development achieved by the majority of section of the society.
You might be interested in this article in the Economist:
http://www.economist.com/news/finance-and-economics/21573979-banking-scandal-highlights-problem-black-money-india-evasive-action
I think black money is not an obstacle for the development of Indian Economy, because it can not be deposited in banks hence it will get circulated regularly in market. So i think it helps to Indian economy rather obstacle.
An interesting question. We have argued that - far from an obstacle - 'black money' (and the corrupt practices that are related to it) is essential to the operation of the modern Indian economy, and a way for the disadvantaged to cut through layers of stifling bureaucracy:
http://www.scottcarney.com/wp-content/uploads/2013/07/Corruption-Miklian-Carney-2013.pdf
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