How the GST Created a Formalisation Cascade - TheWire.in

India’s informal sector accounts for roughly 45% of GDP (Gross Domestic Product), according to the Ministry of Statistics and Programme Implementation (MoSPI, 2025). Low-income countries typically raise only 10 to14% of GDP in taxes, compared to 30 to 40% in high-income countries (Besley and Persson 2014). However, the consequences for India go beyond lost tax revenue: policy choices can…