Economic Survey 2017-18: Ten Key Takeaways Of India’s Economy

Economic Survey 2017-18: Ten Key Takeaways Of India’s Economy

The Economic Survey 2017-18 was tabled in Parliament this afternoon. The report card of the Indian economy for financial year 2017-18 pegged the growth rate for India’s economy in 2018-19 between 7 and 7.5 per cent. The survey has been authored by Chief Economic Adviser Arvind Subramanian. Here are the ten new facts about the Indian economy as highlighted in the economic survey.

Increase in taxpayers

The survey said that after the preliminary analysis of Goods and Services Tax data, there has been a 50 per cent jump in the number of indirect taxpayers and a huge increase in voluntary registrations, particularly by small enterprises. The number of individual income tax filers increased by over 18 lakh since November 2016 — the same month when demonetisation was implemented.

Formal non-agricultural payroll larger

The survey observed that the formal sector, particularly formal non-farm payroll, was significantly larger than the size perceived till now. It said that when the formality was defined in terms of social security provisions like employees’ state insurance and provident fund, the formal sector payroll was 31 per cent (7.5 crore employees) of the entire non-agricultural workforce. Similarly, when it was defined in terms of share in GST net, the same formal sector payroll was calculated to be around 53 per cent (12.7 crore employees).

States with international and interstate trade richer

The survey, for the first time ever in India’s history, tackled international exports of states. It said that the data indicated a correlation between a state’s export performance and the standard of living of its citizens. It found that the states which exported internationally and carried out interstate trade were richer. It found the correlation to be stronger when considering prosperity and international trade.

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Top one per cent of firms hold only 38 pc share in exports

The report analysed India’s exports and found them “unusual” as the largest firms held a much smaller share of exports when compared to other comparable countries and economies. It said that India’s top one per cent of firms held only 38 per cent share in exports which was a stark contrast from countries like Brazil, Germany, Mexico and USA where the share of largest 1 per cent firms was 72, 68, 67 and 55 per cent, respectively. It said that a similar tendency was found to be true for the top five or ten per cent Indian companies as well.

Ready-made garments

The survey said that the clothing incentive package — rebate of state levies (ROSL) — ramped up the exports in ready-made garments (man-made fibers) by nearly 16 per cent. This was not the case with others, the survey found.

Skewed sex ratio

The survey also touched upon the skewed sex ratio in the country. It pointed out that the Indian society is facing the problem wherein a large number of parents continued to have children till they get the desired number of sons.

“The skewed sex ratio in favour of males led to the identification of “missing” women. But there may be a meta-preference manifesting itself in fertility stopping rules contingent on the sex of the last child, which notionally creates “unwanted” girls, estimated at about 21 million. Consigning these odious categories to history soon should be society’s objective. The government’s Beti Bachao, Beti Padhao and Sukanya Samridhi Yojana schemes, and mandatory maternity leave rules are all steps in the right direction” Read More

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