TOPIC: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Inclusive growth and issues arising from it.
6) Tax reforms are essential for improving the ease of doing business, and attracting foreign investment. Discuss the steps taken by India in this regard. (250 words)
Yojana Magazine, June 2018 issue
Why this question
India has made significant strides in improving the ease of doing business index. There have been various tax reforms with the introduction of GST being the most important among them. It is essential to discuss all those tax reforms comprehensively in order to get a better picture of India’s economy.
Key demand of the question
The question wants us to write in detail about all the tax reforms introduced in India recently, which have in turn improved our ease of doing business and led to more foreign investment. The key here is to discuss all the tax reforms in this direction.
Discuss- This is an all-encompassing directive which mandates us to write in detail about the key demand of the question so as to give a complete picture of the issue in hand.
Structure of the answer
Introduction- Write a few lines along with some statistic, which show improved ease of doing business and increased foreign investment in India.
Discuss in points about all those tax reforms introduced recently by the government.
e.g Direct taxes- TIN, OLTAS, e-TCS, e-TDS; e-sahyog, Sevottam etc. Discuss each tax reform briefly.
Indirect taxes- GST; reduction in customs duties etc. Discus each tax reform briefly.
Conclusion– Based on your discussion, form a fair and a balanced conclusion on the given issue.