Ra­jan: Note­bandi & GST hit In­dia’s eco­nomic growth

The Times of India (Mumbai edition) - - FRONT PAGE - —RAGHU­RAM RA­JAN, ex-RBI guv

Wash­ing­ton: De­mon­eti­sa­tion and the Goods and Ser­vices Tax (GST) were the two ma­jor head­winds that held back In­dia’s eco­nomic growth last year, for­mer RBI gover­nor Raghu­ram Ra­jan said on Fri­day, as­sert­ing that the cur­rent growth rate of 7% was not enough to meet the coun­try’s needs.

Ad­dress­ing an au­di­ence at the Univer­sity of Cal­i­for­nia in Berkley, Ra­jan said that for four years — 2012 to 2016 — In­dia was grow­ing at a faster pace be­fore the growth slowed down be­cause of the twin suc­ces­sive shocks of de­mon­eti­sa­tion and im­ple­men­ta­tion of GST. “Growth has fallen off in­ter­est­ingly at a time when growth in the global econ­omy has been peak­ing up,” he said, de­liv­er­ing a lec­ture on the Fu­ture of In­dia.

On the sec­ond an­niver­sary of de­mon­eti­sa­tion on No- The re­al­ity is that 7% (growth) is not enough for the kind of peo­ple com­ing into the labour mar­ket, and we need jobs for them. So, we need more (growth) and can­not be sat­is­fied at this level. If we go below 7%, then we must be do­ing some­thing wrong vem­ber 8, fi­nance min­is­ter Arun Jait­ley staunchly de­fended the drive, say­ing “prophets of doom” had been proved wrong as hard data of two years shows an in­crease in tax base, greater for­mal­i­sa­tion of the econ­omy and In­dia re­tain­ing the fastest grow­ing econ­omy tag for the fifth year in a row.

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