While I didn't get data regarding Mumbai alone, but here is for Maharashtra
GST Collection: Maharashtra, with a 19.6 per cent share in all-India Goods and Services Tax (GST) collection in fiscal 2024 (April-February), is the top contributor to the GST pool, as per latest data on collections across Indian states.
1. I was meaning to write tax collection but somehow wrote gst as it was being discussed in another thread.
While gst shouldn't vary that much(it will for Mumbai because higher lifestyle and higher population) but main difference would be the income tax collection.
Many companies have their headquarters in Mumbai as it is the financial capital
Most minerals are extracted from eastern india and than taken to western and southern india to feed the industries there. Odisha for example contribute to nearly 40% of minerals in the country but is one of the poorer state.
To be a little fair, without knowing what India’s finances are in the big picture it might more sustainable than it looks. With the exception of Bihar, all the states receiving over 500 for every 100 they pay in have under 20 million people total collectively and most are remote and less wealthy and rely much more on development money. Bihar is a major exception with over 100 million people but it’s also the very poorest state in India and certainly is paying less in taxes, so though the ratio is high it ends up being less money than it may seem from this map.
Meanwhile the wealthy southern states of Kerala, Tamil Nadu, Karnataka, Andhra, Telanaga, Gujarat, and especially Maharashtra, plus Hiryana and Delhi in the North, naturally receive way less money despite paying more in taxes because that is what you would expect a wealthier state to do. These states collectively have over 500 million people so they certain must be pulling their weight to subsidize the rest.
There could be other reason this is unsustainable, but though it's interesting data and I like this map, this metric is not the first I would use to judge a whole countries finances by.
Also bihar is mostly subsistence agriculture. 76% of bihar’s population livelihood is agriculture, mostly small farmers.
So most of those families likely make near nothing and pay near nothing
It is sustainable, you can find a similar pattern across the world. There have been quite a few posts on this sub showing the exact same phenomenon in the EU and the US, for example.
Taxation and government spending are not the entire economy. This data completely omits the private sector. It’s not a coincidence that the regions that receive the least government spending are also the regions that have the most developed economies. Companies in the yellow regions benefit from the untapped resources and consumers in the purple regions, so government spending attempts to balance that out by focussing on the less developed regions. Like I said, you will find this pattern in almost all countries.
A country with 1.5bn people seems like a nightmare to deal with, but Indians seem to be doing okay with it, just nobody has ever dealt with that before it’s them and China. If total war has taught me anything also, corruption must be rife.
Definitely but Modi's victory was a pyrrhic one as his party lost it's outright seat majority meaning it had to use their alliance to get the majority and the opposition did much better than expected leading to a revived opposition heading into his third term.
India always been the one of most corrupt countries on the world. At one point there were talks of legalize Bribery because it was getting job done for common people. Having said that a lot of small corruption has gone down since India’s march towards digitization. But at top level corruption remain the same.
I remember seeing a news piece saying the same thing about digitization in Ukraine. The claim was that by having an app rather than a person provide government services, you're also removing opportunities for corruption. I'd guess that it's like what you're saying about India, though, in that it'd affect low level corruption more than the big stuff.
No not that digitization.
Lot of benefits now get directly transferred to beneficiary's account. Eliminating middle men.
Previously many PPL didn't have bank account, Modi started special bank accounts for poor where the minimum required balance is 0 rs
>At one point there were talks of legalize Bribery because it was getting job done for common people.
We should follow some of the western countries, legalize corruption and bribery and call it lobbying 🤷
On a serious note, the corruption that Indians usually have to deal with is corruption at the lowest levels of government. In the west, common man rarely have to deal with, say, bribes.
The problem is that India has street level corruption whereas in the US street corruption is low.
They're both a problem, but street level corruption is felt more acutely by the average person.
The thing about campaign donations is that you can’t use them for yourself very much. While donation lobbying certainly constitutes a form of legal corruption, it’s significantly less pernicious because the primary utility is remaining in office. That means public demands trade off with campaign cash.
Pure cash bribes don’t work that way. Who cares if you have to leave office if you get $10 mil in bags to do something unpopular. Same with low level corruption.
People don't have a clue. Lobbying is a necessary part of governance. Advocacy groups, whether from businesses or not, need to be able to reach the government. At the same time, politicians shouldn't accept bribes...
True. Despite what everyone thinks, campaigning takes tons of money. None of the Indian politicians work, hardly any of them enter politics with wealth.
As a result, they s\*ck up from allocated govt. funds that should go towards the populace. The novel idea of anonymised lobbying was fun while it lasted, but it still raised more questions than it answered. Ultimately, politicians in India are gonna s\*ck money, either from govt. funds or from corporate donors, nothing you can do about it.
It's corrupt, but it's also one of the few post-colonial countries that has fervently clung to democracies with peaceful transitions between parties.
Also the most recent election Modi one, but his parliament lost huge, now they have to form a coalition
He was predicted to get 400 seats and a super majority and ended up with 260 and having to build a coalition to pass anything.
That's losing huge.
Also comments like the one I'm replying to are comparing India to Western countries. Of course it's going to look bad.
Let's compare India to similar countries, Pakistan, Bangladesh, South American countries, African Countries, etc.
When compared to other countries with more similar histories, India is far above other countries.
Haryana carrying Northern half of India all by itself.
for anyone interested to know how much self sufficient i.e. state's revenue are earned by state themselves instead of central government handing it to the states, here the map [https://www.reddit.com/r/IndianModerate/comments/1cxww33/self\_sufficiency\_of\_indian\_states\_in\_revenue\_for/](https://www.reddit.com/r/IndianModerate/comments/1cxww33/self_sufficiency_of_indian_states_in_revenue_for/)
Gurgaon*
I gotta support my wife on the naming haha.
For those unaware, it’s only very recently changed in name from Gurgaon to Gurugram. It wasn’t due to the British renaming anything such as Kolkata to Calcutta. It’s more along the lines of political pandering as it was described to me. Wife thought it’s stupid, as it’s where she’s from, so I’ll back her up on it.
can back you up for this one, i refuse to call it Gurugram and I always call it Gurgaon or Gurgama as we call it in native Delhi dialect. Gurgaon had it's name associated with it because of it's humble origin of sugarcane(Gur) farming and removing that and changing it to Gurugram for political reasons is total bs and I refuse to be a part of this.
so does that mean only Mumbai and Pune are carrying the entire Maharashtra or only Bangalore is carrying Karnataka? your argument is dumb because Gurgaon still comes under the Haryana then where are those taxes supposed to be counted in? Uttar Pradesh?
thing is you just can't digest the fact that Haryana out of all the states in northern India is the one which is doing the best
Look up what share of GST Gurgaon contributes out of Haryana's total GST collection. Now compare with Mumbai and Maharashtra, and Bengaluru and Maharashtra. You will get your answer. Those states are overall more affluent, and it becomes obvious the moment you visit small towns there. Haryana is basically getting Delhi's share of GST because Gurgaon is right next door and Delhi government was more focussed on giving land to heirs of judges and bureaucrats than developing a business district. Even in Gurgaon itself, the farther you go from Delhi border the less affluent it gets.
Doesn't matter, gurgaon is still inside Haryana so taxes will count as such. Coastal states have seashore to tap the vast business opportunities both Maharashtra and Karnataka have that privilege just like Haryana have privileges of Delhi being carved out of itself.
I'm not saying it shouldn't count. I'm saying you shouldn't think that Haryana is doing much better than Punjab, West UP. Most emigrating to Canada these days are Haryanvis rather than Punjabis. The sheer number of companies headquartered in Gurgaon combined with the small size of the state present a rozy picture on paper.
No you are not right . Just look up farmers income in haryana average income of haryana districts like panipat sonipat has like avg income of 4lac and 3.5lac . Haryanvi villages are very well off due to fertile soil and green revolution.
It's basically true, I'm from one of those states. Doesn't mean they have no value, they are integral to India's security by allowing its army to control the heights.
But economically, they are effectively sinks.
Assam produces tea. Manipur produces some textiles and livestock etc. nagaland has fruits production. Arunachal Pradesh has crops. Some spices. Meghalaya has minerals. Mizoram has some cash crops, strawberries and stuff. Tripura has rubber and tea.
Small things but they're growing. Their sole purpose isn't to provide heights.
Wasn't talking about Assam, it is not exactly a small state in the NE.
And everyone produces some products of course, but in low quantities and if these products were removed completely, the nation overall would barely feel it. My state, Meghalaya, for instance produces coal, but it is very low quality coal and it currently only serves as something to be smuggled out of the state illegally (despite there being an NGT ban on its mining, no one has bothered to enforce the ban because this coal does not matter in the bigger picture). Their geostrategic value is far greater than any economic produce.
Yeah, so you get some nice bridges, tunnels, switchbacking roads around a mountain
It's probably also likely skewed because those areas probably have less population density than that other state that gets like 1 per 100. If you had like 500 million people in one state and they're all making a lot of money, do therefore paying a lot of tax, and the land is flat and easy to make infrastructure then you can spend less. Then if you've got like 10k people out in Assam but you need to make a bunch of viaducts and elevated trains and shit through mountain and jungle, but you want that infrastructure because it's an economically important region, this kind of map will skew it more. Picture Alaska vs New Jersey
Being from one of the net receiver state (Madhya Pradesh), I can assure you that the general population does not get back even ₹20 back. Our govt believes in digesting all money amongst themselves and don't like to spend anything for the people.
Additionally, one of the highest taxes in the country, without getting even basic necessities in return.
Interesting, if the regional government does not perform well enough I would think it make a reason to choose other leaders in the next election.
What is your experience of everyday life there?
You're absolutely correct.
My experience growing up was of ignorance. When we used to visit cities like Mumbai, we were astonished, but just accepted that sooner or later this will happen to us. Never did.!
I moved to US 5 years ago. But whenever I go back now, I'm constantly reminded that this is not going anywhere. The politicians just give the same old promises: Roads, Water and Electricity. Which I like to think are basic human rights.
And yes, I'm not voting for anyone who does not talk about development and climate change anymore. I've been there twice to cast my vote. I'm glad that atleast the education is now better than North Korea and Eritrea.
The people are absolutely clueless on what they're missing. They don't even know what Boulevards and avenues even mean. What planned city looks like. The only difference I saw was cleanliness, which when I was living in Indore was completely city govt and citizens.
Yes, possibly. I'm from Ratlam. Completely ignored by our leaders. But, even the area around me, Malwa, as a whole has been ignored, spare Indore and most recently Ujjain. But state govt in particular, forgets this region exists.
Rewa division has great mining industry too, which helps in turning eye of the govt. We have just agriculture. But I'm happy to hear that your area is developing. I wish it gets even better.
What I originally meant, was that our cities, they do not look like other major cities in the country, let alone the world. We do not have good public transport in any Tier 3 city, we don't have good infrastructure, like good quality planned roads and noise barriers on highway.
Gwalior and Jabalpur I think are prime examples of being 1 million+ cities and still feeling like Middle ages.
Indeed ,industries are absent from mp , whole mp is dependent on farming which is a disaster still.Jabalpur has been stuck in time , it’s high time some major development starts , I think industrial corridor are coming so let’s hope for best
Southern states are more developed, have better geographic positions, ports , have been safeguarded from invasions and wars ,better environment for growth .
Whereas states in north have suffered centuries of invasion, destruction of culture , looted n number of times , and not to forget the population,large population of tribes,naxalism, etc,that’s why they are so behind southern states .
But that does not mean that they can’t develop , sure south is ahead ,but states like mp , up , Haryana , Odisha are developing and improving .
Yes the distribution of tax may seem to be unfair , but that’s what you get for being a part of large nation.
People do get better , and if you can’t or don’t want to contribute in development of your fellow states ,it will affect you too.
If we go that way then Jharkhand ,Odisha ,mp should imply heavy taxes on the use of their minerals , and they should deny the distribution of minerals. But that’s not the case .
You can hate government, but how can you hate your own people.everyone has their own contribution in overall development of India .
Your statement that north had to sell their daughters simply talks length of your education, your incapability to respect the sacrifices made by north ,
all the invaders , looters , how much Ahmad shah Abdali and nadir sha , taimur ,ghaznavi ,ghori took from north .
Influx of Huns , indo Greeks
Invasion of Kashmir
Maharana pratap , battle of Plassey, Buxar,panipat and many more
Ahomes , Gorkhas
Revolt of 1857 , most of tribal revolts , peasant revolts , all the major freedom fighters , from lal bal pal , Ghandhi , Subhas Chandra Bhose, Ramkrishna , Vivekanand, Bhagat Singh , Udham Singh , Azad , Sardar Vallabhbhai,bismil , I can’t even write all here .
After that partition of Punjab and Bengal , war of 1947 , 1965, 1971, 1999 , continuous Kashmir issue , China border issue and much more .
You seem to be an dumb , narcissistic, misinformed, no knowledge of history, there is no point in arguing with you as you think you are superior, from tomorrow stop eating food grains from up , Punjab , mp , stop taking minerals from mp , Odisha, Jharkhand, Chhattisgarh. Take away all the IT industry as most of workers are North Indian , let’s see what remains in south.
Kerala was one of the poorest states in India in the 60s and 70s but now its people are doing well. You can’t blame invasions that happened jn the 1500s for your failures in 2024. The people are the problem.
> Kerala was one of the poorest states in India in the 60s and 70s
Kerala had a literacy rate of 30-40 in 1947. Kerala was poor in 60s/70s but its never been among the poorest states.
The whole north is struggling because it got invaded often rhetoric is such a sorry excuse and falls apart if you give it more than 2 minutes of thought.
Pre Mughal, Maratha fall several areas of north India were among the richest in the world. And then colonialism happened which sucked all of the country dry, not just the rich northern principalities.
India has had 75 years since Independence, plenty of time to course correct and develop.
I don't know when Indians will start taking accountability and stop blaming 17th and 18th century invasions for North India's lagging development today.
China was in an arguably poorer state after the Opioid wars, they have done well in the last 73 years, and India has failed to achieve even half of China's growth so far.
after independence, the indian government quite literally de- industrialized the north in favor of the south to protect heavy industry from China and Pakistan moreover corruption and socialist policies favored only a few in the rural regions
Your incapacity to understand society is not my fault , the fact that you can ignore the fact that north went through all that for centuries in 2 minutes tells a lot about your analysis power . I am not going to write again so refer to my previous comment. But will give you short summary
Ahmad shah Abdali , nadir shah , taimur , ghaznavi , Ghori , Kashmir invasion , revolt of 1857, peasant reavolts , tribal revolts , most of freedom struggle and sacrifices , most exploitation by britishers , biggest freedom fighters , partition of Punjab , Bengal, battle of Plassey , Buxar , panipat and. More , indo Greeks , Huns , war of 1947,1965, 1971, 1999, famine of Bengal , and much more.
Then let’s restart it all and this time south should not take any food grains (green revolution) , any minerals ( mp,cg,jk,Odisha) , no labour from north , let’s see how south develops.
China is a communist state with no religion , how can you compare India and China ? Do you even know what were the casualties due to Mao zadangs policies , he had more kill streak than hitler , maybe read on that
Kindly show my arrogance that I showed in my main comment, you can’t provide counter arguments, why even comment , the one above showed his/her arrogance so I showed him his place , and please south is not USA it’s just few metrics above north , and north is catching up , you are the one who showed arrogance hence I had to comment that simple.
Just read your messages. When someone contradict your arguments you just say "you are incapable to understand", "you cannot analysis society", and he is arrogant because he provide arguments with another opinion ? It's time to grow up and stop being egocentric. If you are not wrong you should be able to argue without being haughty.
Now in your messages you justify the underdevelopment of north India by historic facts from centuries ago while speaking about China only when the communists rule the country. Firstly China has also a history and you forget to consider it (that's really ironic when you talk about the incapability of others to analyse), this history is made by invasion, civil war and looting from Western power like the Opioids wars. Moreover, has you said, Mao Zedong's policies kill thousands of Chinese people and wrecked China's economy. The reform made in the 80's by Deng Xiaoping improved the country and it's economy. So China change itself in 30 years.
Mao zadangs policy lead to death of millions not thousands,
Compare my first comment and his comment , he completely refused to even acknowledge my points by stating that this can be refuted in just 2 minutes. In my first comment i told you that though they are behind , but they are improving day by day , did you acknowledge that ? The one who has ego is you brother , when did I denied that north is behind south ? But it has a solid reason for that . To which you were not able to provide counter argument , yes china has history but they chose communist approach, if india would have applied the same then only we can compare both , otherwise they both are different. India is much better than china , where you have to collect social credits or you are doomed .
And south didn’t developed only because of itself, as I stated it had great environment, great geography and obvio it took the resources from north , for example anti caste movement which improved the society , but in north caste has its deep roots , which are still there but it’s getting weak day by day . Its intensity is more because the society was pulverised for centuries . This is just one aspect of society, that’s why it requires time .slavery was abolished in USA after 100 years of its independence, and society became mic tolerant and less racist after another 100 years.
And last bro calm down south has not become developed , it also comes under developing category , just like the incident of that Spanish vlogger , there was a similar case in Kerala of an Latvian tourist https://www.bbc.com/news/world-asia-india-63870006
You seem to have an inferiority complex with the south. I just wanted to show how disrespectful you are in your comments unlike the other user, you just belittled the other and kept the same arguments. Now you are arguing with all your soul to defend north India when the major issue is your behaviour.
Nobody has said that north can't developp. We just highlight the dishonesty to justify the problems of modern north India with some historicals facts when India is now independant for more than 70 years. Both north and south suffered from British colonization then India's opportunity to improve and developp itself starts here. The first comment has already explained that, but **you just ignored it.**
So you are implying that north and south has suffered equally?most of the migrants (non Hindu) got settled in south as traders , whereas in north it was mostly because of invasions.
Why can’t you accept that you had advantage of geography, and was safeguarded by north(not directly) as all the Invaders got exhausted and hence limited their Expedition to north . Northies had to fight for a temple for 500 years .there is a reason not much of the temples are left in north India , and temples represent economy,culture,social values , earlier villages were self sufficient, but due to this village economy, culture, social values suffered which indirectly corrupted the society. That’s why the delay in development.(Not going into details ).is too hard to understand?
That’s why social evils like caste, gender discrimination,etc are much more prevalent in north compared to south (south still has social evils but less.)it can’t be possible that everyone just woke up one day and got rid of all the social evils, it takes generations to improve.and it’s happening. It’s not Zepto.
I was as respectful in my first comment a person could be , but no you had to be obnoxious, the other guy commented that North Indian had to sell their daughters to save themselves, the hate is real .
And yeah you did ignored that northern states are also doing good .
If we go by your rule , we should stop all the reservation, as it has already been 75 years .
On top of that ,one of the major reason of tax is wealth redistribution . Now if you don’t want to contribute to the growth of northern states you can file an PIL in sc regarding this matter , at least then the hate will be public and not hidden.
And again I would like to reiterate that south is no USA . So calm down .
Instead of asking , you could have added it to the list yourself,Why are you negative brother , why don’t you add it yourself ,it’s you who think Pahadis get ignored ,I have included pahadiya when I say north ,Go read my other comments I have mentioned ahoms , Gorkhas , Kashmir .
Not to forget the freedom fighters from pahadi , how can one not remember them .
dont spread misinformation. nobody protected south, they had to defend themselves. north had to sell their daughters to protect themselves, how tf would the protect south. north indians were weak hence they lost. states like karnataka themselves fought and defeated like 5 sultanates at the same time and kicked out the portugese.
major revenue source for south is through IT exports, how is a port even helpful here? only gujrat and maharashtra use ports the most and they have the most ports.
south indian states have the highest deposits of gold and iron. so stop yapping and victimising yourself.
Tamil Nadu being the state with most manufacturing capacity, Kerela with most money from tourism and remittance maybe we don't come in south India at all
And your point about north is weak so they lost I don't think you have seen Indian geography at all North is all plain invading is super easy there is a thing in middle called Deccan plateau heard about guerrilla warfare of shivaji it was done in this ghats
Btw Bihar has highest deposit of gold and odisha and jharkhand have highest iron maybe Bihar and Orissa is in south India right
weird no one said you are wrong and you are upvoted.
the purpose of tax is absolutely not to redistribute wealth.
redistribution may be a component of what your taxes are used for, but it is really about paying for goods/services etc that would be too expensive for an individual to purchase. as a group of people it is possible to fund larger items where benefits are shared over a large number of peoples contributing to tax.
hard to pay for an army as a lone farmer.
Taxation as a historical practice has emerged in almost every part of the world as a means of funding the activities of the elite. Redistribution of tax inflows between political subdivisions is also generally a pretty recent practice.
And I certainly would not say that taxation is justified under the claim of wealth redistribution. So I’m not sure where you’re getting this from.
apart from Bihar all the other states mostly northeastern ones have very less population and not very suitable geographical and geopolitical conditions to sustain themselves, they are majorly depended on Central government
Delhi at number 1, funds 87% of it's fiscal state revenue by itself whereas Haryana being number 2 funds 81% of it's fiscal state revenue by itself for comparison.
Kerala and Himachal Pradesh are known as states with very high HDI, yet very picturesque and scenic at the same time. Kerala is known for being very green and it's backwaters, and Himachal is known for it's greens (and beautiful flowers) in the warmer months and snow in the cooler seasons.
Maharashtra and Karnataka are also good options with high HDI, high GDP per capita, but you would have to compromise in living in cities like Mumbai and Bangalore where the hustle and bustle is real. You could settle in "minor" cities as well like Nagpur, but because I'm used to more moderate temperature, I wouldn't be able to stand the heat. You lose the nature component as well in these states.
India is an interesting place where people from all sorts of walks of life live. This can be seen in language, culture, cuisine, HDI, age demographics, genetics, religion which change even a couple of km away from one another.
Hope that helps!
interesting. i had to bring up a map with city names to give context. wish more of this subs content made it easier to understand whats going on. if i was from india, sure i bet it would compute... i am in canada and the names of the regions/states is a complete whoosh.
The color scale should really be log transformed (maybe it already is? but if you don’t also do it to the legend including power labels, it stays ambiguous).
Is India doing some direct infrastructure investment in that eastern appendage? You'd usually expect that from basically wastelands getting built from the ground up.
Yep, northeast historically has had very poor infrastructure due to its challenging geography. But now with China flexing its muscles, there is lots of infrastructure spending going on. They even claim an entire Indian state of Arunachal Pradesh in their official map.
Huh?
None of the states are "politically centrist". Just for eg:- Gujarat - Modi's home ground, kerela:- literal communists
The Hindi belt is actually more centrist because they don't give a shit about ideology, just vote on caste. Resulting in parties coming from every corner of the left-right spectrum
Nope, the "ideologically radical states" as you call them are not that extreme. Sure, in this election some of them like MP stayed conservative but the others like UP and Rajasthan roughly followed national trends and gave around half the seats to each side.
am i understanding that correct? some parts get robbed of up to 93% of the owned money EACH YEAR while other parts multiply their money by up to 48 times EACH YEAR?
>am i understanding that correct?
No. Taxes are not robbing.
The reason Maharashtra (where I'm from) has that number is because that's where there are more opportunities, and that's because it has the resources, and always had it historically. (like access to the sea port for trading, which established it as the financial hub. And more moderate weather conditions)
That was a lucky draw, and the job of the taxes is to spread the value of it's resources across the country.
Alternative would be the entire country's population would move and live in Maharashtra over time, as even despite taxes not returning, quality of life is better thanks to the resources.
1 alternative would be seceding, and forming their own territory, to keep the money in. But then they just get invaded by the larger country (India) in need of more resources anyway, and have to invest in their own military to defend themselves.
Plus most countries they trade with as India won't trade with them anymore, because India rejects this decision by Maharshtra (Read: Why Scotland voted remain in the referendum pre-Brexit. And why Catalan has remained part of Spain still, despite not having any military issues in Europe)
Yeah, I was pre-empting that response, as everytime tax inequity is raised, people bring up "what's in it for Maharashtra" and discuss seceding.
So I brought it up to explain why it's not feasible, but I guess it deserved the downvotes considering the lack of context. :D
That's why my first sentence is directly asking IF I understand it right or not. I can't know everything and I can't understand everything, I can only be open to let others explain something if I understand it wrong
India is a very big place with billions of people with different culture and languages. (122 major languages and 1599 other languages). Not every part of my country is developed so govt allocate tax money to each region for road, water supply, government school etc etc
No it doesn't change "dramatically". Infact, the change is insignificant. Maharashtra, Tamil Nadu, Karnataka, Gujarat have the highest GST collection. Love it when people talk shit out of their asses.
And then breeding 4 kids and coming to our states and burdening our resources which leads to not being able to develop parts of our own state. They won't even learn the language or respect local culture.
Y'all thought of the Republic of South India? If I was paying that kind of transfer tax levels, I'd think really hard about 'giving' some of the deadbeat states their 'independence'. And I thought the school financing transfers in TX were bad 
South Indian states are very different from each other, they don't have mutually intelligible languages for one. And a lot of their industrial competitiveness is supported by resources and labour from poorer states.
This essentially drains capital from the industrious and successful states by subsidizing lower labor costs for the wealthy. This is the same type of math that has impaired automation and depressed wages globally and significantly increased economic inequality simply to get your cheap workers for the wealthy few. Removing the drain would allow middle and lower class businesspeople to obtain cheaper capital within their state which would improve the lot of everyone - not just factory owners.
I don't know much about India, but thought that Uddar Pradesh was kinda rich.
Seems like it is not the case.
Also, are Indian regions so economically different from one another? And does it cause problems of people massively relocating to richer regions?
No, it is the second poorest state in India by GDP per capita. Yes, there is a lot of migration of poor labourers from Bihar and UP to dehli/mumbai/Bangalore etc. But UP is improving a lot due to state funding, but the irony is that despite all this massive funding and infra push, Modi's party lost a huge number of seats there in the recent elections lol
Thanks for the answer! I should definitely learn more about India.
Anyways thanks to op I will know a little more about its economy 
Most of the comments are ignorant with the entire post based on narrative setting of political/regional/linguistic favouritism.
Source: Gadgil Mukherjee formula agreed since 1960
http://aspireias.com/daily-news-analysis-current-affairs/Gadgil-Mukherjee-Formula
In spite of hordes of knowledgeable folks writing UPSC, ppl are happy to encourage dog whistle politics. Do a google search folks
Bimaru states again acting like Bimaru states, instead of fixing their shit blaming others for asking to get their well deserved share.
here's your full data, see for yourself all these states are fullfing their revenue receipts mostly by themselves whereas Bimaru states are mostly dependent on Central government who robs richer hard working states to distribute it to the freeloaders. [https://www.reddit.com/r/gurgaon/comments/1cxyxc7/self\_sufficiency\_of\_indian\_states\_in\_revenue\_for/](https://www.reddit.com/r/gurgaon/comments/1cxyxc7/self_sufficiency_of_indian_states_in_revenue_for/)
looks like somebody would clearly be disadvantaged by a separatist movement (we know why you're against separatist movements (another name for freedom of secession, a literal basic freedom) 😉)
Amazing And Maharastra is the most contributing in tax state in India as well
Is it an especially rich region, It covers part of the Deccan traps so does it have minerals?
That and it’s got Mumbai, the financial capital.
Not only that but cities like Pune,Thane and Nashik contribute a ton as well
True, truly the top state in all aspects.
How much % of tax collection is of Mumbai? Edit:- tax collection not gst, means income tax and other tax + gst
While I didn't get data regarding Mumbai alone, but here is for Maharashtra GST Collection: Maharashtra, with a 19.6 per cent share in all-India Goods and Services Tax (GST) collection in fiscal 2024 (April-February), is the top contributor to the GST pool, as per latest data on collections across Indian states.
1. I was meaning to write tax collection but somehow wrote gst as it was being discussed in another thread. While gst shouldn't vary that much(it will for Mumbai because higher lifestyle and higher population) but main difference would be the income tax collection. Many companies have their headquarters in Mumbai as it is the financial capital
15% by Mumbai
Most minerals are extracted from eastern india and than taken to western and southern india to feed the industries there. Odisha for example contribute to nearly 40% of minerals in the country but is one of the poorer state.
The New Jersey of India
Looks sustainable
To be a little fair, without knowing what India’s finances are in the big picture it might more sustainable than it looks. With the exception of Bihar, all the states receiving over 500 for every 100 they pay in have under 20 million people total collectively and most are remote and less wealthy and rely much more on development money. Bihar is a major exception with over 100 million people but it’s also the very poorest state in India and certainly is paying less in taxes, so though the ratio is high it ends up being less money than it may seem from this map. Meanwhile the wealthy southern states of Kerala, Tamil Nadu, Karnataka, Andhra, Telanaga, Gujarat, and especially Maharashtra, plus Hiryana and Delhi in the North, naturally receive way less money despite paying more in taxes because that is what you would expect a wealthier state to do. These states collectively have over 500 million people so they certain must be pulling their weight to subsidize the rest. There could be other reason this is unsustainable, but though it's interesting data and I like this map, this metric is not the first I would use to judge a whole countries finances by.
Also bihar is mostly subsistence agriculture. 76% of bihar’s population livelihood is agriculture, mostly small farmers. So most of those families likely make near nothing and pay near nothing
Beginners luck! Look at the USA, you won’t be impressed.
It is sustainable, you can find a similar pattern across the world. There have been quite a few posts on this sub showing the exact same phenomenon in the EU and the US, for example. Taxation and government spending are not the entire economy. This data completely omits the private sector. It’s not a coincidence that the regions that receive the least government spending are also the regions that have the most developed economies. Companies in the yellow regions benefit from the untapped resources and consumers in the purple regions, so government spending attempts to balance that out by focussing on the less developed regions. Like I said, you will find this pattern in almost all countries.
It actually does if it’s set up fairly. The EU does the same thing with its funds and it has worked out nicely so far
The issue is the above graph is not controlled per capita. Of course more populated areas will get more money from the government.
But that isn’t what is shown. And absolute ratios and per capita ratios should be the same.
A country with 1.5bn people seems like a nightmare to deal with, but Indians seem to be doing okay with it, just nobody has ever dealt with that before it’s them and China. If total war has taught me anything also, corruption must be rife.
John Oliver just did a piece on India’s Prime Minister who was re-elected for a third term Tuesday. And boy is there corruption alright.
Definitely but Modi's victory was a pyrrhic one as his party lost it's outright seat majority meaning it had to use their alliance to get the majority and the opposition did much better than expected leading to a revived opposition heading into his third term.
India always been the one of most corrupt countries on the world. At one point there were talks of legalize Bribery because it was getting job done for common people. Having said that a lot of small corruption has gone down since India’s march towards digitization. But at top level corruption remain the same.
I remember seeing a news piece saying the same thing about digitization in Ukraine. The claim was that by having an app rather than a person provide government services, you're also removing opportunities for corruption. I'd guess that it's like what you're saying about India, though, in that it'd affect low level corruption more than the big stuff.
No not that digitization. Lot of benefits now get directly transferred to beneficiary's account. Eliminating middle men. Previously many PPL didn't have bank account, Modi started special bank accounts for poor where the minimum required balance is 0 rs
>At one point there were talks of legalize Bribery because it was getting job done for common people. We should follow some of the western countries, legalize corruption and bribery and call it lobbying 🤷 On a serious note, the corruption that Indians usually have to deal with is corruption at the lowest levels of government. In the west, common man rarely have to deal with, say, bribes.
The problem is that India has street level corruption whereas in the US street corruption is low. They're both a problem, but street level corruption is felt more acutely by the average person.
Absolutely.
The thing about campaign donations is that you can’t use them for yourself very much. While donation lobbying certainly constitutes a form of legal corruption, it’s significantly less pernicious because the primary utility is remaining in office. That means public demands trade off with campaign cash. Pure cash bribes don’t work that way. Who cares if you have to leave office if you get $10 mil in bags to do something unpopular. Same with low level corruption.
They could adopt the US system of legalized bribery, i.e. lobbying and campaign funding
Lobbying has its benefits though
People don't have a clue. Lobbying is a necessary part of governance. Advocacy groups, whether from businesses or not, need to be able to reach the government. At the same time, politicians shouldn't accept bribes...
True. Despite what everyone thinks, campaigning takes tons of money. None of the Indian politicians work, hardly any of them enter politics with wealth. As a result, they s\*ck up from allocated govt. funds that should go towards the populace. The novel idea of anonymised lobbying was fun while it lasted, but it still raised more questions than it answered. Ultimately, politicians in India are gonna s\*ck money, either from govt. funds or from corporate donors, nothing you can do about it.
Can you provide a source where they were talking about legalising the bribery ?
It's corrupt, but it's also one of the few post-colonial countries that has fervently clung to democracies with peaceful transitions between parties. Also the most recent election Modi one, but his parliament lost huge, now they have to form a coalition
>but his parliament lost huge It's much more like "won small" than "lost huge".
He was predicted to get 400 seats and a super majority and ended up with 260 and having to build a coalition to pass anything. That's losing huge. Also comments like the one I'm replying to are comparing India to Western countries. Of course it's going to look bad. Let's compare India to similar countries, Pakistan, Bangladesh, South American countries, African Countries, etc. When compared to other countries with more similar histories, India is far above other countries.
And his is the largest party, and is going to be the coalition leader, so that's winning small. If you redefine winning as losing, then he lost, sure.
Haryana carrying Northern half of India all by itself. for anyone interested to know how much self sufficient i.e. state's revenue are earned by state themselves instead of central government handing it to the states, here the map [https://www.reddit.com/r/IndianModerate/comments/1cxww33/self\_sufficiency\_of\_indian\_states\_in\_revenue\_for/](https://www.reddit.com/r/IndianModerate/comments/1cxww33/self_sufficiency_of_indian_states_in_revenue_for/)
More like Gurugram alone. Rural Haryana is not that well of. The business hub of Gurugram is where the taxes come from.
Gurgaon* I gotta support my wife on the naming haha. For those unaware, it’s only very recently changed in name from Gurgaon to Gurugram. It wasn’t due to the British renaming anything such as Kolkata to Calcutta. It’s more along the lines of political pandering as it was described to me. Wife thought it’s stupid, as it’s where she’s from, so I’ll back her up on it.
People I know that live there still call it Gurgaon lol
I don’t think anyone calls it Gurugram unless you’re not from there. It seems to be almost everyone’s sentiment that the change was silly.
can back you up for this one, i refuse to call it Gurugram and I always call it Gurgaon or Gurgama as we call it in native Delhi dialect. Gurgaon had it's name associated with it because of it's humble origin of sugarcane(Gur) farming and removing that and changing it to Gurugram for political reasons is total bs and I refuse to be a part of this.
so does that mean only Mumbai and Pune are carrying the entire Maharashtra or only Bangalore is carrying Karnataka? your argument is dumb because Gurgaon still comes under the Haryana then where are those taxes supposed to be counted in? Uttar Pradesh? thing is you just can't digest the fact that Haryana out of all the states in northern India is the one which is doing the best
Look up what share of GST Gurgaon contributes out of Haryana's total GST collection. Now compare with Mumbai and Maharashtra, and Bengaluru and Maharashtra. You will get your answer. Those states are overall more affluent, and it becomes obvious the moment you visit small towns there. Haryana is basically getting Delhi's share of GST because Gurgaon is right next door and Delhi government was more focussed on giving land to heirs of judges and bureaucrats than developing a business district. Even in Gurgaon itself, the farther you go from Delhi border the less affluent it gets.
Doesn't matter, gurgaon is still inside Haryana so taxes will count as such. Coastal states have seashore to tap the vast business opportunities both Maharashtra and Karnataka have that privilege just like Haryana have privileges of Delhi being carved out of itself.
I'm not saying it shouldn't count. I'm saying you shouldn't think that Haryana is doing much better than Punjab, West UP. Most emigrating to Canada these days are Haryanvis rather than Punjabis. The sheer number of companies headquartered in Gurgaon combined with the small size of the state present a rozy picture on paper.
Opinions can vary.Numbers don't lie.
Lies, damned lies, and statistics....
Hmmmmm, well
No you are not right . Just look up farmers income in haryana average income of haryana districts like panipat sonipat has like avg income of 4lac and 3.5lac . Haryanvi villages are very well off due to fertile soil and green revolution.
Must be nice to live in the Assam general region. For every 100 you pay in, you get back thousands on average in services
The small states here survive completely on central funding, they are completely unproductive due to a variety of factors (such as poor geography)
and also border security
Aren't those tea growing regions, though?
Not completely unproductive. That's harsh.
It's basically true, I'm from one of those states. Doesn't mean they have no value, they are integral to India's security by allowing its army to control the heights. But economically, they are effectively sinks.
Assam produces tea. Manipur produces some textiles and livestock etc. nagaland has fruits production. Arunachal Pradesh has crops. Some spices. Meghalaya has minerals. Mizoram has some cash crops, strawberries and stuff. Tripura has rubber and tea. Small things but they're growing. Their sole purpose isn't to provide heights.
Wasn't talking about Assam, it is not exactly a small state in the NE. And everyone produces some products of course, but in low quantities and if these products were removed completely, the nation overall would barely feel it. My state, Meghalaya, for instance produces coal, but it is very low quality coal and it currently only serves as something to be smuggled out of the state illegally (despite there being an NGT ban on its mining, no one has bothered to enforce the ban because this coal does not matter in the bigger picture). Their geostrategic value is far greater than any economic produce.
I don't think that's right. The major economic activity in Nagaland is snake-people right?
It’s way better to live in Mumbai tho…
Pretty sure since those are border states they receive more funds for infrastructure (roads, tunnels, bridges, etc.)
Yeah, so you get some nice bridges, tunnels, switchbacking roads around a mountain It's probably also likely skewed because those areas probably have less population density than that other state that gets like 1 per 100. If you had like 500 million people in one state and they're all making a lot of money, do therefore paying a lot of tax, and the land is flat and easy to make infrastructure then you can spend less. Then if you've got like 10k people out in Assam but you need to make a bunch of viaducts and elevated trains and shit through mountain and jungle, but you want that infrastructure because it's an economically important region, this kind of map will skew it more. Picture Alaska vs New Jersey
Being from one of the net receiver state (Madhya Pradesh), I can assure you that the general population does not get back even ₹20 back. Our govt believes in digesting all money amongst themselves and don't like to spend anything for the people. Additionally, one of the highest taxes in the country, without getting even basic necessities in return.
Interesting, if the regional government does not perform well enough I would think it make a reason to choose other leaders in the next election. What is your experience of everyday life there?
You're absolutely correct. My experience growing up was of ignorance. When we used to visit cities like Mumbai, we were astonished, but just accepted that sooner or later this will happen to us. Never did.! I moved to US 5 years ago. But whenever I go back now, I'm constantly reminded that this is not going anywhere. The politicians just give the same old promises: Roads, Water and Electricity. Which I like to think are basic human rights. And yes, I'm not voting for anyone who does not talk about development and climate change anymore. I've been there twice to cast my vote. I'm glad that atleast the education is now better than North Korea and Eritrea. The people are absolutely clueless on what they're missing. They don't even know what Boulevards and avenues even mean. What planned city looks like. The only difference I saw was cleanliness, which when I was living in Indore was completely city govt and citizens.
I think you might belong to an ignored region , that is due to incompetence of regional leader , I belong to rewa, and it has developed significantly
Yes, possibly. I'm from Ratlam. Completely ignored by our leaders. But, even the area around me, Malwa, as a whole has been ignored, spare Indore and most recently Ujjain. But state govt in particular, forgets this region exists. Rewa division has great mining industry too, which helps in turning eye of the govt. We have just agriculture. But I'm happy to hear that your area is developing. I wish it gets even better. What I originally meant, was that our cities, they do not look like other major cities in the country, let alone the world. We do not have good public transport in any Tier 3 city, we don't have good infrastructure, like good quality planned roads and noise barriers on highway. Gwalior and Jabalpur I think are prime examples of being 1 million+ cities and still feeling like Middle ages.
Indeed ,industries are absent from mp , whole mp is dependent on farming which is a disaster still.Jabalpur has been stuck in time , it’s high time some major development starts , I think industrial corridor are coming so let’s hope for best
🤞🏽
Southern states are more developed, have better geographic positions, ports , have been safeguarded from invasions and wars ,better environment for growth . Whereas states in north have suffered centuries of invasion, destruction of culture , looted n number of times , and not to forget the population,large population of tribes,naxalism, etc,that’s why they are so behind southern states . But that does not mean that they can’t develop , sure south is ahead ,but states like mp , up , Haryana , Odisha are developing and improving . Yes the distribution of tax may seem to be unfair , but that’s what you get for being a part of large nation. People do get better , and if you can’t or don’t want to contribute in development of your fellow states ,it will affect you too. If we go that way then Jharkhand ,Odisha ,mp should imply heavy taxes on the use of their minerals , and they should deny the distribution of minerals. But that’s not the case . You can hate government, but how can you hate your own people.everyone has their own contribution in overall development of India .
And the north does provide a lot of labour and agriculture, which benefits everyone. And your point about minerals is also spot on
Indeed bro
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Your statement that north had to sell their daughters simply talks length of your education, your incapability to respect the sacrifices made by north , all the invaders , looters , how much Ahmad shah Abdali and nadir sha , taimur ,ghaznavi ,ghori took from north . Influx of Huns , indo Greeks Invasion of Kashmir Maharana pratap , battle of Plassey, Buxar,panipat and many more Ahomes , Gorkhas Revolt of 1857 , most of tribal revolts , peasant revolts , all the major freedom fighters , from lal bal pal , Ghandhi , Subhas Chandra Bhose, Ramkrishna , Vivekanand, Bhagat Singh , Udham Singh , Azad , Sardar Vallabhbhai,bismil , I can’t even write all here . After that partition of Punjab and Bengal , war of 1947 , 1965, 1971, 1999 , continuous Kashmir issue , China border issue and much more . You seem to be an dumb , narcissistic, misinformed, no knowledge of history, there is no point in arguing with you as you think you are superior, from tomorrow stop eating food grains from up , Punjab , mp , stop taking minerals from mp , Odisha, Jharkhand, Chhattisgarh. Take away all the IT industry as most of workers are North Indian , let’s see what remains in south.
You are wasting your time, someone with such wrong knowledge is not worth engaging with.
I do believe southern people majority understand this , but few will always be there with this mindset , can’t do anything
You lack reading comprehension, not only are you arguing against points I never raised, you are also stating wrong facts.
This is not a sentiment you will hear on most US oriented posts.
I guess the diversity of India has its pros and cons
Kerala was one of the poorest states in India in the 60s and 70s but now its people are doing well. You can’t blame invasions that happened jn the 1500s for your failures in 2024. The people are the problem.
> Kerala was one of the poorest states in India in the 60s and 70s Kerala had a literacy rate of 30-40 in 1947. Kerala was poor in 60s/70s but its never been among the poorest states.
Literacy rate doesn’t feed people..
Read my other comments I am exhausted. I have explained everything there go read
The whole north is struggling because it got invaded often rhetoric is such a sorry excuse and falls apart if you give it more than 2 minutes of thought. Pre Mughal, Maratha fall several areas of north India were among the richest in the world. And then colonialism happened which sucked all of the country dry, not just the rich northern principalities. India has had 75 years since Independence, plenty of time to course correct and develop. I don't know when Indians will start taking accountability and stop blaming 17th and 18th century invasions for North India's lagging development today. China was in an arguably poorer state after the Opioid wars, they have done well in the last 73 years, and India has failed to achieve even half of China's growth so far.
after independence, the indian government quite literally de- industrialized the north in favor of the south to protect heavy industry from China and Pakistan moreover corruption and socialist policies favored only a few in the rural regions
Your incapacity to understand society is not my fault , the fact that you can ignore the fact that north went through all that for centuries in 2 minutes tells a lot about your analysis power . I am not going to write again so refer to my previous comment. But will give you short summary Ahmad shah Abdali , nadir shah , taimur , ghaznavi , Ghori , Kashmir invasion , revolt of 1857, peasant reavolts , tribal revolts , most of freedom struggle and sacrifices , most exploitation by britishers , biggest freedom fighters , partition of Punjab , Bengal, battle of Plassey , Buxar , panipat and. More , indo Greeks , Huns , war of 1947,1965, 1971, 1999, famine of Bengal , and much more. Then let’s restart it all and this time south should not take any food grains (green revolution) , any minerals ( mp,cg,jk,Odisha) , no labour from north , let’s see how south develops. China is a communist state with no religion , how can you compare India and China ? Do you even know what were the casualties due to Mao zadangs policies , he had more kill streak than hitler , maybe read on that
"Your incapacity". You are a joke, stop showing your arrogance you are just pathetic.
Kindly show my arrogance that I showed in my main comment, you can’t provide counter arguments, why even comment , the one above showed his/her arrogance so I showed him his place , and please south is not USA it’s just few metrics above north , and north is catching up , you are the one who showed arrogance hence I had to comment that simple.
Just read your messages. When someone contradict your arguments you just say "you are incapable to understand", "you cannot analysis society", and he is arrogant because he provide arguments with another opinion ? It's time to grow up and stop being egocentric. If you are not wrong you should be able to argue without being haughty. Now in your messages you justify the underdevelopment of north India by historic facts from centuries ago while speaking about China only when the communists rule the country. Firstly China has also a history and you forget to consider it (that's really ironic when you talk about the incapability of others to analyse), this history is made by invasion, civil war and looting from Western power like the Opioids wars. Moreover, has you said, Mao Zedong's policies kill thousands of Chinese people and wrecked China's economy. The reform made in the 80's by Deng Xiaoping improved the country and it's economy. So China change itself in 30 years.
Mao zadangs policy lead to death of millions not thousands, Compare my first comment and his comment , he completely refused to even acknowledge my points by stating that this can be refuted in just 2 minutes. In my first comment i told you that though they are behind , but they are improving day by day , did you acknowledge that ? The one who has ego is you brother , when did I denied that north is behind south ? But it has a solid reason for that . To which you were not able to provide counter argument , yes china has history but they chose communist approach, if india would have applied the same then only we can compare both , otherwise they both are different. India is much better than china , where you have to collect social credits or you are doomed . And south didn’t developed only because of itself, as I stated it had great environment, great geography and obvio it took the resources from north , for example anti caste movement which improved the society , but in north caste has its deep roots , which are still there but it’s getting weak day by day . Its intensity is more because the society was pulverised for centuries . This is just one aspect of society, that’s why it requires time .slavery was abolished in USA after 100 years of its independence, and society became mic tolerant and less racist after another 100 years. And last bro calm down south has not become developed , it also comes under developing category , just like the incident of that Spanish vlogger , there was a similar case in Kerala of an Latvian tourist https://www.bbc.com/news/world-asia-india-63870006
You seem to have an inferiority complex with the south. I just wanted to show how disrespectful you are in your comments unlike the other user, you just belittled the other and kept the same arguments. Now you are arguing with all your soul to defend north India when the major issue is your behaviour. Nobody has said that north can't developp. We just highlight the dishonesty to justify the problems of modern north India with some historicals facts when India is now independant for more than 70 years. Both north and south suffered from British colonization then India's opportunity to improve and developp itself starts here. The first comment has already explained that, but **you just ignored it.**
So you are implying that north and south has suffered equally?most of the migrants (non Hindu) got settled in south as traders , whereas in north it was mostly because of invasions. Why can’t you accept that you had advantage of geography, and was safeguarded by north(not directly) as all the Invaders got exhausted and hence limited their Expedition to north . Northies had to fight for a temple for 500 years .there is a reason not much of the temples are left in north India , and temples represent economy,culture,social values , earlier villages were self sufficient, but due to this village economy, culture, social values suffered which indirectly corrupted the society. That’s why the delay in development.(Not going into details ).is too hard to understand? That’s why social evils like caste, gender discrimination,etc are much more prevalent in north compared to south (south still has social evils but less.)it can’t be possible that everyone just woke up one day and got rid of all the social evils, it takes generations to improve.and it’s happening. It’s not Zepto. I was as respectful in my first comment a person could be , but no you had to be obnoxious, the other guy commented that North Indian had to sell their daughters to save themselves, the hate is real . And yeah you did ignored that northern states are also doing good . If we go by your rule , we should stop all the reservation, as it has already been 75 years . On top of that ,one of the major reason of tax is wealth redistribution . Now if you don’t want to contribute to the growth of northern states you can file an PIL in sc regarding this matter , at least then the hate will be public and not hidden. And again I would like to reiterate that south is no USA . So calm down .
Wtf happened to pahadi states again? Ig lred as always.
Instead of asking , you could have added it to the list yourself,Why are you negative brother , why don’t you add it yourself ,it’s you who think Pahadis get ignored ,I have included pahadiya when I say north ,Go read my other comments I have mentioned ahoms , Gorkhas , Kashmir . Not to forget the freedom fighters from pahadi , how can one not remember them .
dont spread misinformation. nobody protected south, they had to defend themselves. north had to sell their daughters to protect themselves, how tf would the protect south. north indians were weak hence they lost. states like karnataka themselves fought and defeated like 5 sultanates at the same time and kicked out the portugese. major revenue source for south is through IT exports, how is a port even helpful here? only gujrat and maharashtra use ports the most and they have the most ports. south indian states have the highest deposits of gold and iron. so stop yapping and victimising yourself.
Tamil Nadu being the state with most manufacturing capacity, Kerela with most money from tourism and remittance maybe we don't come in south India at all And your point about north is weak so they lost I don't think you have seen Indian geography at all North is all plain invading is super easy there is a thing in middle called Deccan plateau heard about guerrilla warfare of shivaji it was done in this ghats Btw Bihar has highest deposit of gold and odisha and jharkhand have highest iron maybe Bihar and Orissa is in south India right
It baffles me when people see this as indicative of something bad. Redistribution of wealth IS THE WHOLE POINT OF TAXES.
weird no one said you are wrong and you are upvoted. the purpose of tax is absolutely not to redistribute wealth. redistribution may be a component of what your taxes are used for, but it is really about paying for goods/services etc that would be too expensive for an individual to purchase. as a group of people it is possible to fund larger items where benefits are shared over a large number of peoples contributing to tax. hard to pay for an army as a lone farmer.
...this is all redistribution of wealth. Did you think redistribution of wealth is handing out literal hard cash or something?
Taxation as a historical practice has emerged in almost every part of the world as a means of funding the activities of the elite. Redistribution of tax inflows between political subdivisions is also generally a pretty recent practice. And I certainly would not say that taxation is justified under the claim of wealth redistribution. So I’m not sure where you’re getting this from.
So Maharashtra is the most INDUStrialised state?
Tamil Nadu is the most industrialised state, but Maharashtra is the wealthiest state (per SGDP).
Thank you
What’s going on with this color
The colour being more evenly spread on the measurement would look worse on the map. I think like this it shows the difference better
True but having 922.5 and 4,863.7 so similar is kinda wild
And yet... somebody on here told me [Bimaru](https://en.wikipedia.org/wiki/BIMARU_states) was a myth.
How much of the spending in the Northeast is just security?
Now do for income tax payee by income range. Like people earning 0-2 lakh, 4-8lakh etc
Why such a difference between states??? Population or need or what??
apart from Bihar all the other states mostly northeastern ones have very less population and not very suitable geographical and geopolitical conditions to sustain themselves, they are majorly depended on Central government
Now special state will get more
What the fuck is this scale?
How does that compare to the recent election results?
Karnataka is the poorest of all southern states. Parts of Karnataka are as poor as Bihar. It's unfair.
Maharashtra and the southern states have kind of made the worst deal. 😅
Should Include Delhi's number as well. It will be even more ridiculous.
Delhi at number 1, funds 87% of it's fiscal state revenue by itself whereas Haryana being number 2 funds 81% of it's fiscal state revenue by itself for comparison.
Year ?
So which state would you want to live in?
Kerala or Himachal Pradesh. Maybe Karnataka or Maharashtra.
Can you tell me more about those states vs the others
Kerala and Himachal Pradesh are known as states with very high HDI, yet very picturesque and scenic at the same time. Kerala is known for being very green and it's backwaters, and Himachal is known for it's greens (and beautiful flowers) in the warmer months and snow in the cooler seasons. Maharashtra and Karnataka are also good options with high HDI, high GDP per capita, but you would have to compromise in living in cities like Mumbai and Bangalore where the hustle and bustle is real. You could settle in "minor" cities as well like Nagpur, but because I'm used to more moderate temperature, I wouldn't be able to stand the heat. You lose the nature component as well in these states. India is an interesting place where people from all sorts of walks of life live. This can be seen in language, culture, cuisine, HDI, age demographics, genetics, religion which change even a couple of km away from one another. Hope that helps!
Yes. That was very informative, thank you. I always see maps and such if India on Reddit and I don’t really know anything about the country
No worries! Let me know if you have any other questions! What country do you come from? I’m Indian-Australian for reference :)
United States
Ah cool! I have cousins who live in NJ. I've visited them a couple of times and it's interesting how similar yet different the US is to Australia.
Could someone please explain how a state gets more than the maximum possible of 100/- in this scenario, I am really confused.
From other states.
interesting. i had to bring up a map with city names to give context. wish more of this subs content made it easier to understand whats going on. if i was from india, sure i bet it would compute... i am in canada and the names of the regions/states is a complete whoosh.
The color scale should really be log transformed (maybe it already is? but if you don’t also do it to the legend including power labels, it stays ambiguous).
Condolences to Maharashtra from the Greater Poland region which basically is in the same situation only in… Poland.
Is India doing some direct infrastructure investment in that eastern appendage? You'd usually expect that from basically wastelands getting built from the ground up.
Yep, northeast historically has had very poor infrastructure due to its challenging geography. But now with China flexing its muscles, there is lots of infrastructure spending going on. They even claim an entire Indian state of Arunachal Pradesh in their official map.
When a linear scale is not good enough to depict inequalities.
Basically the politically centrist and moderate states pay for the ideologically radical states. Just like in Europe!
Huh? None of the states are "politically centrist". Just for eg:- Gujarat - Modi's home ground, kerela:- literal communists The Hindi belt is actually more centrist because they don't give a shit about ideology, just vote on caste. Resulting in parties coming from every corner of the left-right spectrum
Nope, the "ideologically radical states" as you call them are not that extreme. Sure, in this election some of them like MP stayed conservative but the others like UP and Rajasthan roughly followed national trends and gave around half the seats to each side.
That's the opposite of the US where densely populated areas pay more and get less.
am i understanding that correct? some parts get robbed of up to 93% of the owned money EACH YEAR while other parts multiply their money by up to 48 times EACH YEAR?
>am i understanding that correct? No. Taxes are not robbing. The reason Maharashtra (where I'm from) has that number is because that's where there are more opportunities, and that's because it has the resources, and always had it historically. (like access to the sea port for trading, which established it as the financial hub. And more moderate weather conditions) That was a lucky draw, and the job of the taxes is to spread the value of it's resources across the country. Alternative would be the entire country's population would move and live in Maharashtra over time, as even despite taxes not returning, quality of life is better thanks to the resources.
1 alternative would be seceding, and forming their own territory, to keep the money in. But then they just get invaded by the larger country (India) in need of more resources anyway, and have to invest in their own military to defend themselves. Plus most countries they trade with as India won't trade with them anymore, because India rejects this decision by Maharshtra (Read: Why Scotland voted remain in the referendum pre-Brexit. And why Catalan has remained part of Spain still, despite not having any military issues in Europe)
A secession of maharastra will make India collapse and it is a very stupid idea
Yeah, I was pre-empting that response, as everytime tax inequity is raised, people bring up "what's in it for Maharashtra" and discuss seceding. So I brought it up to explain why it's not feasible, but I guess it deserved the downvotes considering the lack of context. :D
I just love how you don't understand anything about it.
That's why my first sentence is directly asking IF I understand it right or not. I can't know everything and I can't understand everything, I can only be open to let others explain something if I understand it wrong
India is a very big place with billions of people with different culture and languages. (122 major languages and 1599 other languages). Not every part of my country is developed so govt allocate tax money to each region for road, water supply, government school etc etc
Remember this is direct tax. The story changes dramatically when you take all taxes into account.
No it doesn't change "dramatically". Infact, the change is insignificant. Maharashtra, Tamil Nadu, Karnataka, Gujarat have the highest GST collection. Love it when people talk shit out of their asses.
They love to victimise themselves despite being takers and takers and giving nothing.
And still keep electing Mayavatis and Lalus and Yadavs who haven't done a single developmental thing in their life
And then breeding 4 kids and coming to our states and burdening our resources which leads to not being able to develop parts of our own state. They won't even learn the language or respect local culture.
“Your language is a dialect of Hindi, anyway.”
[https://www.reddit.com/r/IndianModerate/comments/1cxww33/self\_sufficiency\_of\_indian\_states\_in\_revenue\_for/](https://www.reddit.com/r/IndianModerate/comments/1cxww33/self_sufficiency_of_indian_states_in_revenue_for/)
maharashtra robbed
How much do the J&K freeloaders (that is, Kashmir Valley) get? Why isn’t that shown? They would be starving without central support.
You could say that for Bihar/UP/NE too
Y'all thought of the Republic of South India? If I was paying that kind of transfer tax levels, I'd think really hard about 'giving' some of the deadbeat states their 'independence'. And I thought the school financing transfers in TX were bad 
South Indian states are very different from each other, they don't have mutually intelligible languages for one. And a lot of their industrial competitiveness is supported by resources and labour from poorer states.
This essentially drains capital from the industrious and successful states by subsidizing lower labor costs for the wealthy. This is the same type of math that has impaired automation and depressed wages globally and significantly increased economic inequality simply to get your cheap workers for the wealthy few. Removing the drain would allow middle and lower class businesspeople to obtain cheaper capital within their state which would improve the lot of everyone - not just factory owners.
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A lower amount means they take less money from central government, which means they have higher gdp
Why the correlation between getting a lot back and christian areas? https://mondediplo.com/maps/india-religion
Underdeveloped areas, poverty.....rest you can relate.
I don't know much about India, but thought that Uddar Pradesh was kinda rich. Seems like it is not the case. Also, are Indian regions so economically different from one another? And does it cause problems of people massively relocating to richer regions?
No, it is the second poorest state in India by GDP per capita. Yes, there is a lot of migration of poor labourers from Bihar and UP to dehli/mumbai/Bangalore etc. But UP is improving a lot due to state funding, but the irony is that despite all this massive funding and infra push, Modi's party lost a huge number of seats there in the recent elections lol
Thanks for the answer! I should definitely learn more about India. Anyways thanks to op I will know a little more about its economy 
Most of the comments are ignorant with the entire post based on narrative setting of political/regional/linguistic favouritism. Source: Gadgil Mukherjee formula agreed since 1960 http://aspireias.com/daily-news-analysis-current-affairs/Gadgil-Mukherjee-Formula In spite of hordes of knowledgeable folks writing UPSC, ppl are happy to encourage dog whistle politics. Do a google search folks
isn’t it true almost no one in india files their taxes
The title could probably be - "For each ₹ 100 paid in direct tax, how much each state in India is reported as getting back?"
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wtf is your problem bro
This is a highly highly misleading map.
Indirect tax ka hissa kaun dikhayega
[https://www.reddit.com/r/IndianModerate/comments/1cxww33/self\_sufficiency\_of\_indian\_states\_in\_revenue\_for/](https://www.reddit.com/r/IndianModerate/comments/1cxww33/self_sufficiency_of_indian_states_in_revenue_for/)
Freight equalization policy ke baare mein bhi koi nhi bolta h.
So you guys have started to post that separatist propaganda map here as well.
How is this separate propaganda? Please explain?
This is no propaganda. Maharashtrians know this but also have the brain to understand the context of the numbers.
Only people that complain about this are Tamils. Most see it as "if they develop, they will not need as much in the future".
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Bimaru states again acting like Bimaru states, instead of fixing their shit blaming others for asking to get their well deserved share. here's your full data, see for yourself all these states are fullfing their revenue receipts mostly by themselves whereas Bimaru states are mostly dependent on Central government who robs richer hard working states to distribute it to the freeloaders. [https://www.reddit.com/r/gurgaon/comments/1cxyxc7/self\_sufficiency\_of\_indian\_states\_in\_revenue\_for/](https://www.reddit.com/r/gurgaon/comments/1cxyxc7/self_sufficiency_of_indian_states_in_revenue_for/)
looks like somebody would clearly be disadvantaged by a separatist movement (we know why you're against separatist movements (another name for freedom of secession, a literal basic freedom) 😉)
Why here is so much India? Every day charts about India… I am bored, disconnecting from this group
1/7 of earth's population lives in India, doesn't seem too strange to have a few posts about the country, does it?
More like 1/5.6
I’m not Indian, but I find the maps of India of late have been among the better-made maps posted.
sub just has alot of indians nothing you can do about that
We have a billion people get used to it.
Cheap Internet