Domestic trade is 60 percent of GDP
Maharashtra, Gujarat, Karnataka, Tamil Nadu &
Telangana account for 70% of India’s exports
Internal trade India is 60 percent of GDP
Maharashtra, Gujarat, Karnataka, Tamil Nadu &
Telangana account for 70% of India’s exports
The Economic Survey 2017-18 presented today in Parliament by the Union Minister of Finance and Corporate Affairs, Shri Arun Jaitley informs that as on December 2017, there were 9.8 million unique GST registrants slightly more than the total Indirect Tax registrants under the old system (where many taxpayers were registered under several taxes).
Dwelling on the subject of International Trade, Inter-State Trade and Economic Prosperity, the Survey points-out for the first time in India’s history that five States-Maharashtra, Gujarat, Karnataka, Tamil Nadu and Telangana account for 70% of India’s exports.
New data on the international exports of States suggests a strong correlation between export performance and States’ standard of living. Last year Survey had estimated that India’s Inter-State trade in goods was between 30 and 50 percent of GDP. But the GST data suggests that India’s internal trade in goods and services (excludes non-GST goods and services) is actually even higher and is about 60 percent of GDP.
The survey based on new GST data also provides a close look at the firm-level exports and states that India’s exports are unusual in that the largest firms account for a much smaller share of exports than in other comparable countries. Export concentration by firms is much lower in India than in the US, Germany, Brazil, or Mexico.
The top one percent of firms accounted for 72, 68, 67 and 55 percent of exports in Brazil, Germany, Mexico, and USA respectively but only 38 percent in the case of India. Similarly, the top 5 percent accounted for 91, 86, 91 and 74 percent in those countries, compared with 59 percent in India and the top 25 percent of firms accounted for 99, 98, 99 and 93 percent in those countries, as opposed to 82 percent in India.
Formality defined in terms of social security provision yields an estimate of formal sector payroll of about 31 percent of the non-agricultural work force; formality defined in terms of being part of the GST net suggests a formal sector payroll share of 53 percent.
Key: trade survey, exports India, export ranking
