Describe briefly a rationale behind choosing 'Self-reliance' as a planning objective for the Indian economy. Explain how, Goods and Services Tax (GST) has simplified the multiplicity of taxes on goods and services.

Question

Accepted Answer

**Rationale behind choosing 'Self-reliance' as planning objective:**

1. **Reduce Foreign Dependence:** India was recently freed from foreign control, so needed to reduce dependence on foreign countries.

2. **Avoid Foreign Interference:** Dependence on imported food, foreign technology and capital may increase foreign interference in policies.

3. **Domestic Resource Development:** Develop through own resources rather than depending on foreign aid.

4. **Food Security:** Ensure self-sufficiency in food production.

**GST Simplifying Multiplicity of Taxes:**
- Replaced multiple indirect taxes with single tax
- Created one nation, one tax, one market
- Input tax credit eliminated cascading effect
- Simplified compliance through single return filing
- Reduced tax evasion through digital tracking