Tax-to-GDP ratio stagnation in India: Causes and policy implications

The ratio of taxes to gross domestic product shows how much money the government gets by controlling the economy. This research sheds insight on why the nation is unable to invest in its economic growth. To help India achieve its goal of becoming an industrialized and developed economy by 2025, it goes on to propose policies based on evidence. This study made use of secondary data. According to the report, the primary reasons for the low tax to GDP ratio include a lack of political will, the dominance of the few via exclusion, prejudice, and nepotism in the legal and institutional environments, such as SROs in banking, industry, and FBR. If India is serious about implementing its one-point objective of taxing all income, the research found that the country's tax collecting mechanism needs some work. It need to prioritize doing away with exceptions as well.