A few days back Chief Economic Adviser Arvind Subramanian has rendered an economic survey report to the parliament. While he portrayed good factor in the prospect of Indian economy estimated 7 to 7.5 percent growth in the economy.
There has been a 50% increase in the number of indirect taxpayers. There has also been a large increase in voluntary registrations, especially by small enterprises that buy from large enterprises wanting to avail themselves of input tax credit.
It became evident that when “formality” was defined in terms of social security provisions like EPFO/ESIC, the formal sector payroll was found to be about 31% of the non-agricultural workforce. When “formality” was defined in terms of being part of the GST net, such formal sector payroll share was found to be 53%.
States that export internationally and trade with other States were found to be richer. Such correlation is stronger between prosperity and international trade.
And some other point also depicted in the survey as follows:
- The top 1% of Indian firms account for only 38% of exports, unlike in other countries, where they account for a substantially greater share.
- It is pointed out that the Rebate of State Levies (ROSL) has increased exports of ready-made garments (man-made fibers) by about 16% but not of others.
- The data highlights another seemingly known fact that Indian society exhibits a strong desire for a male child. It points out that most parents continued to have children until they get a desired number of sons.
- Extrapolating the data, the survey indicates that growth in savings does not bring economic growth whereas growth in investment does.