You are here: Home » Economy & Policy » News
Business Standard

GST rollout deadline of April challenging: Raghuram Rajan

He said the passage of the GST Bill augurs well for the growing political consensus for economic reforms

Press Trust of India  |  New Delhi 

Rajan set to bow out, leaving India strategies for inflation, bank clean up
  • ALSO READ

    Raghuram Rajan's last hurrah Who will replace Raghuram Rajan at RBI? All you need to know More to do in my job, says RBI governor Raghuram Rajan RBI will survive any Governor, says outgoing Raghuram Rajan Five highlights of Raghuram Rajan's last RBI policy

The Reserve Bank said on Tuesday it will be challenging to roll out from April 1, 2017 but the new indirect tax regime will eventually boost business sentiment and investments.

Dispelling fears of price rise due to the rollout of Goods and Services Tax, Governor said its impact could be assessed only after the rate is decided and inflation could be short-lived as seen in many other countries.

"While timely implementation of will be challenging, there is no doubt that it should raise returns to investment across much of the economy, even while strengthening government finances over the medium term," Rajan said in the fourth bi-monthly monetary policy statement.

"This should boost business sentiment and eventually investment," said Rajan after announcing his last monetary policy before he exits on September 4.

He said the passage of the Bill augurs well for the growing political consensus for economic reforms.

Parliament yesterday approved the Constitutional Amendment Bill and the government will work hard to meet the April 1, 2017 deadline for rolling out the new indirect tax regime.

Talking to reporters at the customary post monetary policy press conference, Rajan said is currently focused on meeting the inflation glide path target of 5 per cent by March 2017.

"It is premature to talk about inflationary impact of when we don't know what the rates would be. The experience of other countries, like Malaysia, has been that the inflationary impact was short lived. We have to see that price adjustment, if there is one, doesn't become generalised inflation," he said.

First Published: Tue, August 09 2016. 12:42 IST
RECOMMENDED FOR YOU