#BRILLIANT CHARTS showing India’s GDP Growth - A Notable #ACHIEVEMENT by #Modinomics
Let’s look at India's nominal GDP that matters to Households & Businesses
EXCLUDING government borrowing & spending) Indians Households & Business Experience ~ZERO GROWTH since 2014-22
This contrasts with the period FY 2008-14 when non-government component of GDP accounted for 38% of nominal growth.
Economists believe these animal spirits to be a vital ingredient for high growth of #SMEs & #Businesses
But you might argue that lots of STARTUPS have created jobs and lots of govt data shows lots of New Business Registrations since 2017
BOTH ARE TRUE but
During these yrs #Farmers, #Unorganised Biz & #SMEs LOST a total of #45-60 MILLION JOBS. So 1-2 Million Startup jobs is a drop
What about New Business Registrations ? India is a Services economy
Well GST (2017), If I had a business with 3 Verticals in 24 states, I would need to have ONE SERVICE TAX Registration.
Post GST, I would need 3X24 = 72 GST REGISTRATION Numbers (see TREE)
You got the JOKE ?
In conclusion, the ENTIRE INCREMENTAL NOMINAL growth in GDP from 2014 to 2022 = the INCREMENTAL government borrowing & spending
EXCLUDING the Govt, India’s HOUSEHOLDS & BUSINESSES (formal & informal) did NOT witness any growth !!
One might Ague that 2014 to 2022 Experienced Several Crises (#Demonetisation, #GST, #NBFC ILFS, #COVID etc). EXCEPT for Covid, Everything was #Modinomics Policy
but there were many crises during 2004-14 as well viz. GFC, Euro crisis, Arab Spring, Taper tantrum, Oil @ $120/bbl
Bottom-Line, #Modinomics ONLY WORKS FOR
1) BIG Corporates
2) GIFT City in Gujarat
CORPORATE tax's share in Centre's gross tax collections is 26% in 2021-22, down from 32% in 2018-19.
TODAY INDIVIDUALS TAX Collections is HIGHER than CORPORATE TAX.
See Revenue Foregone
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