Economic Survey of India 2017-18
If you have a curiosity to know about the Economic Survey of India 2017-18, you are reading the right article. Economic survey of India has become one of the most readable reports of any country. India today represent the ‘sweet spot’ for an international market. The FDI investment is raising every year. Even in the turmoil times (slow economic growth at the global level), the percentage increase of FDI is promising in India perspective. The Economic Survey of India does not only deal with the numbers and percentage increase of different sector in present time or with past performances. The Economic Survey of India deals with different aspects of Economy and link it with India society and people. It is because it is the people who make an economy. The Economic Survey of 2017-18 has revealed 10 new interesting points regarding Indian Economy.
The ten new interesting points or findings of Economic Survey of India 2017-18 are:
- Large increase in registered indirect and direct taxpayers: On 1 July 2017 Indian Government introduced the new Indirect Tax System known as the Goods and Service Tax (GST). The data received by the GST system has revealed a new and critical finding of the Indian Economy (which were earlier did not come to light due to the absence of authentic data). There is a 50% increase in unique indirect taxpayers under the new system of indirect taxes i.e. GST. The comparison is done with the pre-GST system. Last financial year had witnessed a rise of about 1.8 million individual income tax filers.
- The formal payroll of the non-agriculture sector is much greater than believed earlier: There are two ways in which formal sector is recognized. One is in terms of social security provision and the second is defined in terms of being in the GST system. The result was striking and surprising in nature. The formal payroll in terms of social security provision i.e. EPFO/ESIC is recorded more than 30%. The non-agriculture payroll in terms of GST net is recorded more than 50%.
- Co-relation between state prosperity with its SGDP (State GDP): the states that trade more with other states (within India) and export more internationally are richer than other states that are not doing the same. This is the general perception we already understand. But the finding of the Economic Survey of India 2017-18 was striking because the correlation between the prosperity of the state and its international trade is very strong.
- India’s egalitarian export structure: in the western countries, the maximum portion or percentage of the export is done by the major and few giant firms. But in the perspective of India, the Economic Survey of 2017-18 has found out that in respect of export, the major percentage of export is not dominated by the few firms. The top 1% of Indian firms account for just 38% of exports. While in other countries, they account for a substantially greater share.
- The package provided by the central govt. to the clothing sector boosted the exports of readymade garments in last fiscal year: In 2016, the relief from embedded state taxes (ROSI) was announced boosted export of the read- made garments (but not others) by about 16%.
- Meta-preference of son: Indian society has seen a declined of its girl population in respect of boy population due to many factors. The preference towards the son has already known to everyone. The killing of the female in fetus i.e. doing an abortion after knowing the gender of the baby was prevalent in past. But some active efforts of government like Law against abortion, Beti Padhao, Beti Bachao Abhiyan, Sukanya Samridhi Yojana, etc had done great, in changing the view of society towards the female child. But much work has to be done. Economic Survey of India 2017-18 has shown another angle of Indian society towards their family planning. The phenomenon of son “Meta” preference explained by the Economic Survey of 2017-18 is that “parents continue to have children until they get the desired number of son”. This type of fertility planning leads to skewed the sex ratio. Abortion of female child has led to an estimate of 63 million “missing women”. It has been estimated that the Meta preference of son has led to estimate of 21 million “unwanted girls”
- Substantial litigation is avoidable in the tax arena: one of the findings of the survey has brought a point into the light that the tax department’ petition rate is high even though its success rate is marginal and reducing (below 30%). The fact revealed that 0.2% of cases accounted for 56% of the value at stakes. The large portion of cases i.e. 66% of pending cases are accounted for only 1.8% of the value at stake. We should simply focus more and efficiently on the cases that of high stated and try to solve the low stake cases before the going to court. It will save time as well as resources.
- Investment is more important than saving to re-ignite the growth of economy: the economic survey of 2017-18 has shown a finding in comparing different crisis witnessed by the different countries in past and how they recover and aligned to a growth trajectory. The cross-country experienced point out that growth slowdowns are preceded by investment slowdowns. It is not necessary that growth slows down preceded by saving slowdowns. It was the investment that brings back the economy into the growth trajectory more than savings.
- Direct Tax collection of Indian states and local governments are considerably lower than their contemporary states of different federal countries. The direct taxation share of Indian states and local governments are relatively lower than the direct taxation power that they actually possess. It means they are not efficiently using their taxation powers to raise their revenue to govern more freely and lower their dependence on other aids.
- Climate Change and adverse temperature affecting the agriculture production: climate change is the phenomenon that we are witnessing in the present world. Almost every nation on earth has expressed their concern towards the climate change. Since climate change is the global phenomenon which is affecting the whole world. Therefore, it’s the responsibility of every nation to work in the direction of reducing the effect of climate change.
The finding of Economic Survey 2017-18 has shown the adverse impact of extreme weather on agriculture yields. The impact of weather is felt only with the high-temperature rise and low rainfall. The impact of rising temperature and decreasing rainfall affect twice as large in unirrigated areas as in irrigated areas.