Ad Here  
Small units prefers to remain small... Cement prices continue to rise… Return to king coal for urea... An informal presentation - analytical, forward locking... Bihar – Nitish Kumar adopts the Lalu model Tough task taking states together Scientists urged to take up farmer-oriented research Revving up the manufacturing sector Editor's Notes Plummeting profits of PSBs Modi and the lady CRS, a jewel among managers, is no more. Russi Mody – a tribute Dr C Rangarajan returns to Chennai Building loyalty through the stomach The Swadeshi Trump Of course, Gujarat is vibrant L&T- the specialty of special purpose vehicles The ‘Ayyo-yes’ is no more Maximising the micro pricing … Five star activism stalls development activity For whom the bell tolls? TELANGANA at last…BUT Remembering Indira Sivasailam... Solar, solar everywhere … He continues the focus on social amelioration Demise of a media baron... Make standards certification mandatory... Sweet news for TN sugar mills More Shakti to resource mobilisation... A Grand Finale for SN’s MS centenary at the US… More Shakthi to Das’ elbow Towards speedy justice When Ratan Tata visited SRM A professional at the helm of IRDA... No mega rail project for Tamil Nadu Intellectual of rare qualities Limit foreign borrowings to hi-tech, export potential projects... Tax agriculture Rahman at CIC Where is Rajaji? Reliance’s TV – 18 ready to launch Tamil News Channel Recognition to role of NBFCs.... Infrastructure funding – lessons learnt Funding the un-funded Haul over the coal Whistle-Stop Tour of Raghuram Rajan IAS invades NDDB... Road development slows down Align crops to agro climate endowments… Shanti and Sadhana through Music CIPET hqrs to stay at Guindy – for the present? Land reclamation from sea appears cheaper! Air Asia India will set new benchmarks for budget travel TIAM turns a full cycle Why this malaise in medical education? Poor representation for Kerala and TN in Cabinet GM Technology at last! Welcome thrust on trade in Modi’s foreign visits... S Ramanathan – a versatile musician, musicologist CII projects higher growth… This scant respect for Law He saved millions from starvation... B H Kothari - a tribute ONGC at KG Basin A proud Madrasi How Air-India loses customs... TN-leverage strength of BHEL, NLC... Silver Years of Madras Musings Delhi Chalo... Which side are you, Montek? Mu Sigma – is no more TN accounts for the largest recruits by the IT sector Diamond jubilee of Egmore Samskrt School The ‘Jayanthi Tax.’ Delhi is distant… Discoms deserve better… Mersal magnified The star of Spencers is no more Waning interest in public discussions… Computation of GDP – conundrums continue An enemy’s enemy is a friend Boy, can you beat these? The rise and rise of KCP The sea- saw battle continues... A glass full of corruption Not just in-laws (and outlaws); they’ve renowned academics at the helm! L&T: focus on infrastructure and more infrastructure… TN – agglomerate land holdings without alienating ownership PPP mode for upgrading Corporation Hospitals Roaring Ro-Ro facility Insurance companies bleeding, yet no decision on increasing FDI limit! Moily’s bold thrust Revive development banks... Kulandai was a giant When the President was rendered homeless… Fortune 500 review A Grand Finale for SN’s MS centenary at the US… There was flood of milk. Reason: no milk commissioner! A yen for wastage… Contrarian cousins Quality education through the PPP mode Fortune for Indian Airlines Come elections, come advertisements... Modi storms Silicon Valley IPL - no surprise this scam Muffled voices for merit… A C Muthiah – his munificent bequeaths to science Welcome focus on core competence Build close rapport with business leaders Inflation: are we emulating Argentina and Brazil? Medical costs hit the roof... to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Readers' Mail CSR and CMI: promise of another Srinivasan Ramanujan... Rs.1600 crore paper board plant of TNPL Cutting the nose to spite the face EVM is tamper-proof The brown list of Venkitaramanan Marketing expert Balagopal is no more MHC should not return to its old indisciplined ways Online not in line with brick and mortar businesses... Strengthen the base... Fuel for thought A more liberated TN… Delhi returns to BJP Gay abandon in pricing Shale gas and its shallow future Noble nonagenarians... Alexa – Talking Wikipedia No Maha Koottani in TN... Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated Engineering seats go abegging Excel Generators provide the vital back-up Telangana in top gear… A welcome initiative by the judiciary When nations steal growth from one another… An inexplicable neglect Godspeed, Chief Minister JJ Measuring roof tops in terms of KW/MW Shipping woes of Chennai companies Auto components surge… Lesson from Chandrababu Naidu Tihar, Puzhal not different from Parappana Agrahara When small is no larger beautiful.. No engine for this car …and of a popular trade leader For whom the MIDS bell tolls? Adapt Vajpayee dinner diplomacy Lalu’s envy, India’s pride Bihar elections - the Rajaji formula worked Valli, they are more marginalised WTO Meet: resolved to meet again Banning booze... Solar thermal shines… Convulsions in The Hindu Shaming of Tamils by Tamil farmers at Delhi Naidu will soon build a new Hyderabad TGS- The king storyteller A think tank for Chennai Liberal imports idling indigenous capacities Polls and promises Permanent secretariat for TN GIM Music happens London, London Narayan The Jan Dhan bonanza Welcome changes that testify to Jayalalithaa’s return to health The why of tax incentives Tribute – UCAL Selvan… Secularism and anti-Hinduism Don’t seem to feel the pulse… The balancing act A friendly business group Odisha: spectacular win by Naveen Patnaik The power-full Hindujas Kinetic Karnataka Like Hinduism: many paths to reach God... Cleaning Ganga – relocate tanneries and install electric crematoria F C Kohli - his concerns all embracing Pharma – overdose of copying Another Indian music maestro at the UN Making ‘my Amaravati’... Quality silica from Neyveli The rise and fall of Annamalai University More heat than light All eyes on Sankara Nethralaya Put expensive assets created to use... Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Adharma of opposition politics R Sridhar steps down as CEO of Shriram Capital Paytm karo... Colour-Chem’s colourful KRVS Things happen by accident and not by design... Increasing non co-operation of state leaders Wise Presidents China invests in India Tatas moving out of urea production... Tatas moving out of urea production... Tribute – Manikam Ramaswami IPL type auction for VCs? Sweeter prospects for sugar Nuclear power at the nucleus New IT products of Ramco in the pipeline… Focus on quality of power - its only around 170-180V Streamlining mandatory third party cover Wanted: a second airport for Chennai Tribute – M V Murugappan EEC at the National Media Centre Protest masters... Should we change the official year? The Ports’ Pasha expands into Tamil Nadu Where a state respects its litterateurs… Vibrant Gujarat West Bengal: mindless malignancy Breaththrough in malaria control Poor quality of university VCs The Gulf aviation boom Tribute Why land prices zoom in TN? Welcome GST The few handicaps... When online building permits work…. Gas is the way forward Kudos to NDTV... Padma Bhushan for A Ramakrishna Fall in crude prices help in oil sector reform Parliament in paralysis... PC’s preference for professionals Naidu’s return augurs well for Seemandhra Preserving for the future SoA @ 80 Airlines in India: cost and space The nuclear option Eternal support for capitalisation of PS banks A rich pool of talent not utilised…. S V Raju – a ‘good’ true liberal Editor's Says Sri Lanka votes for change Multi-faceted Venkat Robber barons everywhere Delhi is distant When TN politicians can emulate Kerala's More tributes to GR GNS - 100: our first subscriber
Computation of GDP – conundrums continue

Contrary to the widely held opinion, the Chief Statistician to the Government of India, T C A Anant, said that the tax-GDP ratio for India was not much lower than that of other economies!

Anant reasoned that 45 per cent of businesses and trades do not keep proper accounts and are not coming under the tax net. Factoring this, the tax-GDP ratio is not too bad!, he said.

The tax-GDP ratio, currently 16.6 per cent is way below that of emerging market economies (21 per cent) and the average for OECD countries (34 per cent).

IE has been pointing to the very low number of citizens filing tax returns, of just around three crore out of the 125 crore population. To my query on this, Anant pointed to the high exemption limit of Rs. 5 lakh. By proper planning, one may not pay any taxes upto an annual income of Rs 5 lakh!

Rs. 5 lakh income is no small amount, and it is far higher than the per capita income of Rs. 93,293 for 2015-16. It’s time to spread the tax net wide and bring around 40 per cent under the IT net. A contribution of Rs. 1000 as tax for an annual income of Rs. 2 lakh shouldn’t pose a big burden. We can ensure such payment through efficient computerisation.

The more serious concern should be on getting the 45 per cent to maintain accounts. The attempts of Manmohan Singh to impose a presumptive tax of a measly Rs. 1400 on these sections found resistance and had to be withdrawn.

Hopefully, the introduction of GST will help bring about change.

Anant was addressing the members of the Chennai International Centre and presented the nuances of the computation of the gross domestic product, particularly, the efforts made to refine and re-refine the concept. When the NDA-II government claimed a higher GDP growth on new norms, there was, understandably, scepticism and charges of shifting the goal post. It is normal for experts to disagree, and so the scepticism continues!

 Sunder Ramaswamy, noted economist and acting Head of the Madras School of Economics, made a lucid presentation on the evolution of GDP over the last eight decades with continuous refinements.

 A more pressing issue relates to the sudden spurt in GDP growth recorded by several states, many of them part of the BIMARU states. Remember business magazines going gung-ho over the spurt in GDP growth claimed by Bihar and later by Madhya Pradesh? This can be explained for an odd year by the base being low, but when such growth is reported for successive years, the claims needed closer scrutiny. This has to be related to Anant’s observation that different states follow different norms in computing GDP. Greater attention is required to standardise the rules for such computation.


Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236