Analysis Of Tax Reforms On The Indian Economy: Impact On Individual Taxpayers, Startups, And International Dimensions
- IJLLR Journal
- May 12
- 1 min read
Ananya Singh, BBA LLB, Presidency University, Bangalore
ABSTRACT
Tax reforms play a pivotal role in shaping the economic trajectory of a nation by influencing revenue systems, investment flows, and taxpayer behaviour. In India, tax reforms have undergone significant transformation, particularly after the economic liberalisation of 1991, with a focus on simplification, transparency, and economic efficiency. The introduction of the Goods and Services Tax (GST), reduction in corporate tax rates, digitisation of tax administration, and targeted incentives for startups have restructured the fiscal framework of the country.
This paper examines the impact of tax reforms on the Indian economy, with a specific focus on individual taxpayers and startups. It further analyses the international implications of these reforms in terms of foreign investment, global competitiveness, and alignment with international tax standards. While reforms have led to improved compliance, increased formalisation, and enhanced ease of doing business, challenges such as compliance complexity, policy uncertainty, and digital disparities persist. The paper concludes that although tax reforms in India have significantly modernised the taxation system, continuous refinement is necessary to ensure inclusivity, stability, and long-term economic growth.
Keywords: Tax Reforms in India, GST, Individual Taxpayers, Startups, FDI, Tax Compliance, Digital Taxation, Investor Confidence, OECD, Economic Growth.
