C Rangarajan says GST will not put any pressure on GDP growth figures

Vastavam web: Former Reserve Bank Governor C Rangarajan today said the GST rollout has been smooth barring some initial hick ups and maintained the new regime is just an extension of Value-Added Tax (VAT) and will not put any pressure on GDP growth figures.”I don’t think it (GST) will put any pressure on the GDP growth. There are always teething problems when a far- reaching scheme is introduced.”Therefore, some new things have emerged and new things have to be done because of the all-India character of the GST like the transshipment of goods from one state to another. But otherwise, I think so far my impression is it has gone through reasonably well,” Rangarajan told on the sidelines of a programme at the University of Hyderabad.

Earlier in his speech at the programme, he stressed on the need to workout a mechanism to complete the “viable” stalled projects and opined the banking system is under stress as non-performing assets (NPAs) are on the rise.”If corporate balance sheets are weak, automatically the banks’ balance sheets also become weak,” said the former chairman of the Prime Minister’s Economic Advisory Council.The noted economist said some of the bad loans are due to a slowdown in the economy and asset restructuring companies are part of the solution.Rangarajan, who was the helm of the RBI from December 1992 to November 1997, said it is necessary for India to grow at 8 to 9 per cent annually to reach per capita GDP of USD 8,000 by 2030 from the current levels of USD 1,600.