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The article analyzes the move by the administration of Indian Prime Minister Narendra Modi to formalize the economy. The Modi administration made the move in response to the expanding informal sector. The government seeks to expand tax collection by introducing reforms such as a Goods and Services Tax (GST). The slowdown in the growth of the economy is discussed.

The article looks at the move by the administration of Indian Prime Minister Narendra Modi to formalize the economy. The Modi's administration made the move in response to the rampant informal sector that does not involve income tax payment. The government is warned about policies to expand tax collection because they would displace informal ones and would hamper economic growth.

The article focuses on the informal economy within Indian in 2013. Topics include the gross domestic product (GDP) of India in 2013, why economic measurements within India may not be accurate due to the inability to account for informal sectors, and if economic development in rural areas will continue in the future.