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