India is set for a modest recovery after a loss of momentum, as reforms to simplify taxation, lighten business regulations and upgrade infrastructure start to bear fruit. Further reforms to modernise the economy are now needed to drive the creation of high-quality jobs, as well as measures to improve public services and welfare, according to a new OECD report.
While India’s per capita income is converging towards that of the richer countries, inequality has drifted up.
In relation to GDP, India's public debt and interest payments are high compared with most other emerging economies and rating agencies have put India's sovereign debt at the lowest investment grade.
Business taxation in India is characterised by high effective tax rates, a narrow tax base, and an uncertain tax environment for potential investors.
Tax reforms are crucial to promoting inclusive growth in India.
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This country note from Going for Growth 2017 for India identifies and assesses progress made on key reforms to boost long-term growth, improve competitiveness and productivity and create jobs.
Promoting inclusive growth in India requires improving social and physical infrastructure.