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.
- 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.
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