Raghuram Rajan backs GST, says it will make India a common marketplace

Governor of Reserve Bank of India Raghuram Rajan said the Goods and Services Tax (GST) is beneficial for the country as it will unify India.

During his address to a gathering at Presidency University, Rajan said GST will be good for economy and will trim down barriers between the states.

"Broadly speaking, there are two major advantages that GST will bring. Firstly GST could increase the tax base because it will bring more people under the tax net. Secondly, GST will reduce the barriers between states. It will make the country a common market place,” said Rajan.

Rajan also spoke about non-performing asset level in the banking system.

“Banks have devised a mechanism to avoid over-borrowings by large borrowers. Indian banks have the right kind of leveraging, those who said that the banks have no capital requirements are not sensible,” said the RBI governor.

(Image: Indiatimes)