India's tax-to-GDP ratio is one of the lowest when compared with OECD countries. What are the implications of it? Also, examine the factors responsible for such a low ratio. And suggest the measures to improve it. 10 marks

India’s tax-to-GDP ratio is one of the lowest when compared with OECD countries. What are the implications of it? Also, examine the factors responsible for such a low ratio. And suggest the measures to improve it. 10 marks

Mentor’s comment-

https://economictimes.indiatimes.com/budget-faqs/what-is-tax-to-gdp-ratio-where-does-india-fare-on-this-indicator/articleshow/73222499.cms
https://www.financialexpress.com/opinion/why-reforming-archaic-tax-laws-is-crucial/2061143/
In the intro, explain what is tax-to-GDP ration and cite the figure of tax-to-GDP collection in India.
In the body, as implications of such low collection mention the constrained government expenditure and overall related implications, in the factors mention the loopholes in policy, dishonest citizens, inefficient tax regulatory authorities, lack of agreements with other countries etc. In the measures suggest improvements in the tax policies, tight regulation, efficient tax system, agreements with other countries etc.
Conclude by mentioning the importance of robust tax collection for the country.