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Three facts that media will not tell you:
Fact 1: In 2013-2015, every country: US, European countries, India all changed their GDP calculation method to UN SNA 2008 standards.
Media makes it appear as if only India changed its calculation method.
(contd).
Fact 1: In 2013-2015, every country: US, European countries, India all changed their GDP calculation method to UN SNA 2008 standards.
Media makes it appear as if only India changed its calculation method.
(contd).
Fact 2) Arvind Subramanian did his assessment by comparing with a handpicked list of "17 economic indicators".
By playing around with choice of indicators, you can get almost any result you want.
(contd)
By playing around with choice of indicators, you can get almost any result you want.
(contd)
Amazingly, Subramanian left out tax collection as an economic indicator.
In fact, if you go by his claims, then India's tax/GDP ratio soars to a historic high of 20%.
Why did he leave that out from his list of "indicators"? Narrative?
In fact, if you go by his claims, then India's tax/GDP ratio soars to a historic high of 20%.
Why did he leave that out from his list of "indicators"? Narrative?
Fact 3) GST has benefited every major economy that has used it. But GST is always a short term pain.
In fact,India is the only country that did not see growth collapse immediately after GST. Canada and Australia lost 3-4% GDP growth after GST. Canada went into recession briefly.
In fact,India is the only country that did not see growth collapse immediately after GST. Canada and Australia lost 3-4% GDP growth after GST. Canada went into recession briefly.
And now just compare the difficulties of implementing something in India versus a first world country of 2-3 crore people like Australia or Canada.
More people live in Delhi than in the whole of Canada.
India's GST is an economic miracle.
More people live in Delhi than in the whole of Canada.
India's GST is an economic miracle.
