Bank consolidation as a reform is overstated: CEA Arvind Subramanian

He says the govt did not anticipate the rising global oil prices

Chief Economic Advisor Arvind Subramanian spoke to Business Standard journalists on a wide range of issues — from GDP growth and fiscal consolidation to job creation and the goods and services tax (GST). Edited excerpts:

Your thoughts on the economy after demonetisation and the GST, and the prospects, going forward?

There is a global export recovery. I think we can be part of that. With (bank) recapitalisation and NPA resolution, we can seriously start addressing the twin balance-sheet challenge. We need to stabilise the implementation of the GST. If we can finish two-three reforms, we should be in reasonable shape.