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

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

Rajesh Chadha
June 2010

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 competitiveness of the sectors which would have been relatively efficient under distortion- free indirect tax regime.

Computable General Equilibrium Modelling and Policy Analysis