Published On : Mon, Jan 29th, 2018

Temporary effect of GST, note ban are over: Chief Economic Adviser


New Delhi: Chief Economic Adviser Arvind Subramanian address a press conference after the Economic Survey 2018-19 expected to regain India’s GDP growth to be between 7-7.5% in 2018-19, from 6.75%.

Here are the highlights:-

– This year oil prices went up that affected consumption and govt finances and also held back real economic activity

– We think of the twin balance sheet challenges having 4 ‘R’s — Recognition, Resolution, Recapitalisation and Reforms. I think now we are well ahead on all of them

– Government does not have to do anything radical; just finishing what it has started already would be a very ambitious and fantastic agenda to complete

– Temporary effect of GST, note ban are over

– Policy agenda for the year ahead-support agriculture, stabalise GST, complete TBS actions with reforms, privatise Air-India and head-off macro economic pressures and possibility of a ‘sudden stall’ from rising oil prices and sharp correction in stock prices

– GST brings out new findings on the Indian economy that says reforms has increased tax rolls, formal sector is much bigger than believed, firm structure of exports highly diversified and states are big traders

– As India emerges as one of worlds largest economies, it needs to gradually move from being a net consumer of knowledge to becoming a net producer

– The working of GST Council has shown that cooperative federalism can really work