India’s Chief Economic Adviser Arvind Subramanian has been commenting on crucial aspects of the economy, flagging problems and offering solutions.

Here are seven essential points raised by the Chief Economic Adviser (CEA):

Economic Growth: India has the potential of achieving economic growth rate of 8.5 percent per year, Subramanian told Mint in an interview. India’s GDP grew 5.7 percent in the first quarter of 2017-18 down from 7.9% in the same quarter a year ago.

Economic problems: The CEA has cited two main problems for India’s economy — one is the weak demand and the other is the balance-sheet problem created by highly leveraged corporate entities and banks ridden with non-performing assets. Once corporate balance sheets are clean, it would trigger investment demand, he said. Recovery of the financial health of banks would also create an upsurge in credit offtake, as per the newspaper.

Bank reform: The economy's revival significantly depends on rational reforms in the banking sector, the CEA said. In doing so, “shrinking the fundamentally unviable banks, ensuring/creating risk assessment capability in the PSBs (public sector banks), and bringing in more majority private sector ownership will be terribly important reforms,” he told the Mint.

Transitional and structural issues: In another interview to Mint, the Chief Economic Adviser admitted that a number of economic indicators were implying “deceleration of economic activity”. But not all of them were result of the two big reforms — GST and demonetisation.

“GST and demonetisation, I see as transitional negative supply and demand shocks. Since they are transitional, we will hopefully move beyond them,” he said. The problem was more structural, he emphasised.

Among structural issues he mentioned the two balance sheet problems, the “Oil Shock”, along with farm loan waivers which will weigh on the economy.

GST Slabs: According to Subramanian, in near future, the multiple GST rates would converge into three slabs. The three would comprise of a “poor man’s” rate within 0-5 percent, a “core” rate merging the rates ranging from 12-18 percent, and the demerit rate of 28 percent, he told the Economic Times in an interview.

He also said that there was no possibility of having a singular tax rate for all items as had been suggested by the GST proposal of Congress. “In India, we will never get one slab. We have too much of a socialist mindset and for a good reason,” he added.

More items under GST: Real estate and natural gas are likely to come under GST soon. He also batted for inclusion of electricity.

“I want electricity to come in very early because it will enhance competitiveness and help meet the ‘Make in India’ objectives,” he told ET.

Tax Base: The man at the center of India’s economic decisions also said that tax collections under GST were happening properly and added that people would be surprised by amount of expansion the country’s tax base has reached, as per the ET article.

The growth was around 12-13 percent, which was not bad, he mentioned while pointing out that states would not experience a shortfall.