GST will be positive in long run: Raghuram Rajan
November 02, 2017  23:27
image
Former RBI governor Raghuram Rajan termed the government's announcement to infuse Rs 2.11 lakh crore as "good news" saying it is important for banks to have capital for lending going forward.
"Public sector banking system is a big part of Indian system. It is about 70 per cent. More importantly it allows them to take tough decisions, which they could not earlier because they had limited capital," Rajan, currently a professor at University of Chicago Booth School of Business, said.

He further said that more needs to be done in the way of reforms over time in the banking sector and improve governance in public sector banks.
"For the immediate future, it is important to clean up bank-balance sheet. The healthier the projects that are restructured, the stronger the economic growth will be," Rajan, who completed his three-year term in September 2016.

Rajan said the government's decision to scrap old Rs 500/1000 notes on November 8, 2016 did effect economic activities.
He, however added that GST will be positive in long run.
"Looking forward, these three -- fixing the debt, the impact of demonetisation wanning, and GST -- will be growth positive for India," Rajan said. -- PTI
« Back to LIVE

TOP STORIES