But is India really an outlier when it comes to the tax-GDP ratio? Among these economies, India does not appear to be an outlier at all. But our conclusion about India’s tax-GDP ratio does not change even if we include just democracies in this analysis. Thus, the most potent solution for raising India’s tax-GDP ratio is to raise economic growth and average incomes. As the chart below shows, tax-GDP ratio of the country rose the fastest during the boom years of 2002-08.

Source: Mint January 23, 2018 02:26 UTC