A New, Exciting Bird’s-Eye View of the Indian Economy Through the GST

Data on the international exports of states (the first in India’s history) suggests a strong correlation between export performance and states’ standard of living. India’s exports are unusual in that the largest firms account for a much smaller share of exports than in other comparable countries. India’s internal trade is about 60 percent of GDP, even greater than estimated in last year’s Survey and comparing very favorably with other large countries. India’s formal sector, especially formal non-farm payroll, is substantially greater than currently believed. 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.