Two major reasons for cheer

Over the past month, two key developments in India have given investors reason to cheer. The first is the passage of the long-awaited Goods and Services Tax (GST) bill, which could bring huge benefits to India’s economy in the medium term by simplifying the tax system and boosting domestic trade. The second is the announcement of Dr Urjit Patel as the new governor of the Reserve Bank of India. This provides a strong indication policy continuity, and should help to assuage any lingering investor fears over an erosion of central bank independence.