What are the major sources of revenue for the Indian Economy

Enumerate the major sources of revenue for the Indian economy and explain how they contribute to the functioning of the Economy.
The Indian economy's major sources of revenue are as follows:
  • Taxes - Taxes are a significant source of revenue for the Indian government. Direct taxes like corporate taxes, income taxes, and indirect taxes like GST, excise duty, customs duty, and import duty contribute to government revenue. Taxes collected by the government provide funds for infrastructure development, public welfare schemes, and maintaining law and order.
  • Exports - India's agricultural and industrial exports contribute significantly to the country's foreign exchange revenue. The country's major exports include textiles, petroleum products, engineering goods, and gems and jewelry.
  • Investments - Foreign investments in the form of foreign direct investment (FDI) and foreign institutional investments (FII) contribute to India's revenue. These investments create jobs, increase production and support the country's foreign exchange reserves.
  • Dividends and Profits - Companies operating in India contribute to the economy through the payment of dividends and profits. These payments support the government's revenue, benefit shareholders and support economic growth.
All of these revenue sources contribute to the crucial functioning of the Indian economy. They help in various ways, including infrastructure development, job creation, and economic growth. With diversified revenue sources, the country can maintain economic stability to overcome economic challenges.
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