The Economy Survey 2018 estimates the GDP growth rate to the tune of 7-7.5 percent for 2018-19. This makes India the fastest growing economy among the major countries. According to the survey, the second half of the current fiscal can register a growth rate of 6.75 percent.
The major points covered in the survey are described below.
Direct and Indirect taxes have registered major hike
- Indirect taxpayers have increased by 50 percent
- Voluntary registration increased largely
- Major producing states while shifting to the new system can be undermining their tax collection
- This is because GST base distribution amongst them are linked closely with their economy size
Payroll of non-agricultural sector much bigger than though out to be
- Payroll of the formal sector is 31 percent of the non-agricultural workforce
- GST net formality has been found to be 53 percent
Positive correlation between the prosperity of the state and inter-state & international trade
- States having robust international trade are found to be richer
- The exporting state produces better correlation with prosperity
Investment is more important than savings to initiate growth
- Saving’s growth cannot ignite GDP growth, whereas investment growth does
Lower tax collection by state governments compared to other federal nations
- Tax collection is significantly lower in India in relation to state and local governments compared to their counterparts in Germany and Brazil Related Articles
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Without Black Economy, India’s GDP would have been eight time higher!
Agricultural produce is still dependent on climate
- Climate impacts agricultural yields
- Agricultural produce also depends on the Monsoon and amount of rainfall
- Impact is twice in the un-irrigated areas compared to the irrigated zones
Egalitarian Firm Export Structure
- Top one percent of the Indian firms generate 38 percent exports
- In other countries top one percent produce significantly higher exports
Clothing incentive package hiked exports of readymade garments
- ROSL (Rebate of State Levies) has boosted readymade garment exports by approximately 16 percent unlike other segments
