Rural India Needs Tax Reform Push

Rural India’s growth cannot rely solely on government schemes, as structural tax reforms are essential to boost incomes and sustainability, particularly in agriculture and dairy sectors.

The article highlights that while numerous welfare schemes exist, they often fail to address core income challenges, whereas tax relief can directly improve farmers’ net earnings and incentivise value addition.

For instance, farmers frequently sell raw milk instead of processing it due to lack of tax incentives, limiting their income potential.

Tax reforms could encourage rural enterprises to move up the value chain, enhance profitability, and reduce dependency on subsidies. The current system, where agriculture income is largely tax-exempt and indirect taxes like GST impact rural businesses, creates distortions that hinder growth.

Experts argue that simplifying tax structures and offering targeted relief would strengthen rural economies more effectively than expanding schemes alone.

Overall, a shift from scheme-driven support to tax-based empowerment is seen as critical for sustainable rural development and long-term economic resilience. (The Hans India)

Source: Dairynews7x7 13 April, 2026 Read full article here

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