The feeling of beind "Indian" has to come from within. People should be made to realize that if they do something which is not right (black / illegal / cash transaction etc., without proper documentation), what will be the ill effects of the same?
Forget about some ill-informed business persons doing this kind of transactions....
I can quote examples within the so called 'prosperous and global' IT community people.
When they return from their trips from either US / Europe / Australia and have USD, Euros to convert, would some of them not handover their hard earned USD/Euros (in cash) to un-authorized conversion agencies or individuals who offer to pay 2-3 rupees per dollar more than the RBI rate?
Some of them feel that if you do it through an authorized forex firms, an entry will be made in the passport about the amount of money converted and they feel liable to be answerable to the I-T department.
All this unaccounted "foreign currency" is what is one of the major source of funding for these kinds of activities.
If only each of us establish a strict code of personal ethics and values and promise ourselves to adhere by it, we can create a legacy of principled values that we can pass it on to our next generations, too...
Think about it guys...
[PS: I didn't mean intentionally / unintentionally to hurt any sentiments. If I did, I regret the same]