discuss the role of trading communities in the growth of business in India ?
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Answer:
It is now time to dump a tired old assumption about India—that it has an economy closed to trade both within its territory as well as with the rest of the world. The reality is refreshingly different.
The new Economic Survey written by the team of finance ministry economists headed by Arvind Subramanian has used a unique data set of invoices from the goods and services tax network to estimate the level of trade between states (tangentially, we welcome the innovative use of Big Data in the Economic Survey. Railway passenger data has also been used to estimate internal migration patterns. The Indian government needs to embrace such use of Big Data).
The estimates in the Economic Survey show that interstate trade flows, which include the movement of goods between firms and within firms, are around 54% of gross domestic product (GDP). The usual assumption in economic geography, that large countries with substantial domestic markets have robust internal trade, can explain why interstate trade is so active in India, and is perhaps an antidote to the usual belief that the outdated barriers to trade across states reduce the movement of goods and services across borders.
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