Prime Minister Narendra Modi declared in his Independence Day address that the government had set an aim that India should become an economy of $5 trillion by 2024-25. Following the announcement from PM Modi, President Yogi Adityanath of Uttar Pradesh has declared that he too intends to make his state industry of 1 trillion dollars. All aims are optimistic and the completion of those targets will be wonderful things for the Indian economy.
India’s economy is huge but the incomes divide is large, which implies that the majority of the States lag, with a few of them rushing forward. The latest tax collection data released by the Central Direct Tax Council indicate that 61% of the country’s total income from direct taxes is produced by Maharashtra, Delhi and Karnataka alone.
The higher revenue generation represents higher revenues for individuals and corporations, which in effect leads to better jobs and a stronger state-of-the-art industry. Through an analysis of tax incomes for six years (2013-14 to 2018-18) Maharashtra shows that it is leading the ticket in tax revenues. The fact that Maharashtra accounts for the last six years shows the ticket in taxes. The taxes are Rs 19,17,944.98, and Delhi (Rs 6,93,275,11) and Karnataka (Rs 4,99,310,99 crore) have been increased.
For example, Bihar, the 3rd most populous state, has contributed 0.65 per cent to India’s direct income tax over the last six years, and Uttar Pradesh, the most populous in the world, and West Bengal is only 3.12 per cent and 4 per cent, respectively .. Big, famous states such as Uttar Pradesh, Bihar, West Bengal, have poorly performed in the last six years.
No tax collection is expressed in the lack of formal sector jobs and businesses in these highly populated Countries. It also indicates that in these nations much of the working population is not of the group of the salaried and, given the huge number of people who live in those areas, income tax would not have been as small.
Over the next decade, India may become a $5 trillion economic rider; nevertheless, there are not many indications that by 2024–25, the deadline set by PM Modi, the gaping imbalance in revenues could be resolved. Therefore, PM Modi is not only credited for hitting 5 trillion dollars but also for seeking ways to ensure economic prosperity across the world is spread.