Ten new facts on Indian economy, according to Economic Survey

To re-ignite growth, raising investment is more important than raising saving, states the Economic Survey

GN Bureau | January 29, 2018


#taxpayer   #tax   #Indian economy   #Economic Survey   #GST  
Chief Economic Adviser, Dr. Arvind Subramanian at a press conference regarding the Economic Survey 2017-18
Chief Economic Adviser, Dr. Arvind Subramanian at a press conference regarding the Economic Survey 2017-18

Did you know that there has been a large increase in registered taxpayers, exports of readymade garments is on a high and the Indian society exhibits a strong son ‘meta’ preference? The Economic Survey 2017-18 has listed these and many more interesting facts on the Indian Economy. Following are the 10 facts:

 
  1. There has been a large increase in registered indirect and direct taxpayers: A 50 percent increase in unique indirect taxpayers under the GST compared with the pre-GST system. Similarly,  there  has  been  an  addition  (over  and  above  trend  growth)  of   about  1.8  million  in  individual income tax filers since November 2016.

    Read: Economic Survey 2017-18
     
  2. Formal non-agricultural payroll is much greater than believed: More than 30 percent when formality is defined in terms of social security (EPFO/ESIC) provision; more than 50 percent when defined in terms of being in the GST net. 
  3. States’ prosperity is correlated with their international and inter-state trade: States that export more internationally, and trade more with other states, tend to be richer. But the correlation is stronger between prosperity and international trade.
  4. India’s firm export structure is substantially more egalitarian than in other large countries: Top 1 percent of Indian firms account for 38 percent of exports; in all other countries, they account for a substantially greater share (72, 68, 67, and 55 percent of exports in Brazil, Germany, Mexico, and USA respectively). And this is true for the top 5 percent, 10 percent, and so on.
  5. The clothing incentive package boosted exports of readymade garments: The relief from embedded state taxes (ROSL) announced in 2016 boosted exports of readymade garments (but not others) by about 16 percent.
  6. Indian society exhibits strong son “Meta” Preference: Parents continue to have children until they get the desired number of sons. This kind of fertility-stopping rule leads to skewed sex ratios but in different directions: skewed in favor of males if it is the last child, but in favor of females if it is not the last. Where there are no such fertility-stopping rules, ratios remain balanced regardless of whether the child is the last or not. 
  7. There is substantial avoidable litigation in the tax arena which government action could re-duce: The tax department’s petition rate is high, even though its success rate in litigation is low and declining (well below 30 percent). Only 0.2 percent of cases accounted for 56 percent of the value at stake; whereas about 66 percent of pending cases (each less than Rs 10 lakhs) accounted for only 1.8 percent of the value at stake.
  8. To re-ignite growth, raising investment is more important than raising saving: Cross-country experience shows that growth slowdowns are preceded by investment slowdowns but not  necessarily by savings slowdowns. 
  9. Own direct tax collections by Indian states and local governments are significantly lower than those of their counterparts in other federal countries: This share is low relative to the direct taxation powers they actually have.
  10. The footprint of climate change is evident and extreme weather adversely impacts agricultural yields: The impact of weather is felt only with extreme temperature increases and rainfall deficiencies. This impact is twice as large in unirrigated areas as in irrigated ones.

Comments

 

Other News

Expanding Eureka!

Abright yellow van with figures of children playing with a whirligig, a Newton’s cradle, a magnetic compass rolls into the Government Higher Primary School in Kittaganahalli, on the outskirts of Bengaluru. Students in the playground leave what they are doing and mill about it in excitement. For they

The spark in the classroom

Not many children dream of starting an idyllic school of their own when they grow up. But Ramji Raghavan, founder of the Agastya International Foundation – which fosters the creative learning of science in stude

Trafficking survivors’ votes don’t count

While the entire nation is agog with political grapevine, political parties are weighing on all options to lure voters by touching upon issues that impact their lives. Several parties, including the BJP and the Congress have released their manifestos while many are about to join the bandwagon. The

“I have a bigger reason and motivation to join politics”

Urmila Matondkar joined the Congress party and within just two months into politics, the actor is already surrounded by controversies – from being accused of making anti-Hindu comments to inappropriate poll campaigning. Fielded against BJP’s Gopal Shetty in the Mumbai North constituency, Ma

Campaign trail with BJP’s Manoj Kotak

Dressed in white shirt and pants, three time Bhartiya Janta Party (BJP) corporator Manoj Kotak is now contesting from Mumbai north-east constituency. Kotak, representing BJP in the BMC, is ready to rally around Ward 125 in Ghatkopar east area. It’s about 7:30 pm on a hot April e

Modi is now the topic of a PhD thesis

Sunil Bhatt, a Gujarat-based professional, has completed what is possibly the first PhD thesis on prime minister Narendra Modi. The thesis, titled ‘Leadership, Governance and Development: A case study of Shri Narendra Modi’, has been accepted at the Veer Narmad South Gujarat Universit



Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter