Moving to Goods and Services Tax in India: Impact on India's Growth and International Trade

The differential multiple tax regime across sectors of production leads to distortions in allocation of resources thus introducing inefficiencies in the sectors of domestic production. With regard to India’s exports, this leads to lack of international cocompetitiveness of the sectors which would have been relatively efficient under distortion- free indirect tax regime.

 



Rajesh Chadha
Jun 2010