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Economic Survey 2017-18: Top 10 New Facts On Indian Economy

DIVYIA ASTHANA | 0
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| January 29 , 2018 , 14:58 IST

The Economic Survey 2017-18 was tabled in the Parliament on Monday by Union Finance Minister Arun Jaitley on the first day of the Budget Session of Parliament. The Economic Survey is a flagship annual document of the Ministry of Finance, reviewing developments in the economy over the past 12 months.  

The Ministry of Finance in the Economic Survey 2017-18 listed a series of 10 new facts on the Indian economy, which come in the wake of criticisms of a slowdown in the growth of the nation.

1. Large Increase In Registered Indirect And Direct Taxpayers

The Economic Survey found an increase of nearly 50 percent in the number of unique indirect taxpayers under the Goods and Services Tax (GST) as compared to the pre-GST system. Nearly 1.8 million individual income tax filers have been added since November 2016.

2. Increase In Formal Non-Agricultural Payroll

The survey found that formal non-agricultural payroll is much greater than previously believed with more than 30 percent increase when formality is defined in terms of social security (EPFO/ESIC) provisions and more than 50 percent in terms of coming under the GST net.

3. States' Prosperity Correlates To International And Inter-State Trade

States that export more internationally and trade more with other states were found to be richer in general, but there was a stronger correlation between prosperity in the state and international trade.

4. India's Firm Export Structure Substantially More Egalitarian Than Other Countries

While the top 1 percent of Indian firms account for 38 percent of all exports, the top 1 percent of firms in other nations constitute a substantially higher share of exports in other nations, for example, 68 percent in Germany and 55 percent in the US.

5. Rebate Package Increased Exports By 16 Percent

Rebate of State Levies (ROSL) increased exports of readymade garments by 16 percent, however specifically for man-made fibres (MMFs) not of other natural fibres such as silk, cotton etc.

6. Parents Continue To Have Children Till They Get Required Number Of Sons

Data collected in the survey confirmed the preference for male child in Indian society, as it found that most parents will continue to have more children until they get the desired number of sons, which contributed to skewed sex ratios in the nation.

7. Substantial Avoidable Litigation In Tax Arena

The data showed that there was substantial avoidable litigation in the tax arena which could be reduced by suitable government action. While the petition rate of the tax department was high, its success rate in litigation was low or declining.

8. Raising Investment More Important Than Raising Saving To Re-Ignite Growth

Studying cross-country experience, the survey found that growth slowdowns are preceded by investment slowdowns, not necessarily by savings slowdowns.

9. Less Direct Taxes By States And Local Governments In India As Compared To Other Nations

The collection of direct taxes by Indian states and other local governments where they had the power to collect them was found to be significantly lower than their counterparts in other federal countries.

  1. Climate Change Is Having Adverse Impact On Agricultural Yields

The survey studied the impact of climate change on the Indian territory, including extreme temperature changes as well as deficiency in rainfall and their effect on agricultural yields. The impact was found to be twice as large in areas that had not been irrigated as compared to irrigated areas.