GST will have 'very positive' long-term effects: Raghuram Rajan

File photo of former Reserve Bank of India Governor Raghuram Rajan. Photograph:( AFP )

WION Web Team Delhi, India Jan 25, 2018, 03.12 AM (IST)

In a recent television interview, Former RBI governor Raghuram Rajan spoke about the long-term advantages of the two major economic moves of the Modi government -- the Goods and Service Tax and demonetisation. 

He attributed a slowdown in growth to the after-effects of 2016 demonetisation move. 

According to Rajan, the advantages of demonetisation should emerge in the future. He also noted that the move promoted digital payments in the country. 

Rajan noted GST to have "very positive" long-term effects. 

Vice President Venkaiah Naidu also shared his views on GST recently

The vice president noted that the tax "reveals the cost to the manufacturer and benefits the consumer by reduced prices." 

Not only the producers but the retailers also reap benefits as no sales without a bill eliminates corruption. 

"5.9 million people have registered to file GST and 20.2 million people pay taxes. Microfinance, cashless payments are increasing and strengthening the economy. Everybody is responsible for making the change and we should take everyone's opinion," he added.

(With inputs from agencies)