the country's 1.5 billion people live goods and services tax, gst.5 billion people live in 29 separate states and each of those states has its own tax arrangements. as of tomorrow, the gst replaces the complex web of taxes. what does this mean for india? our india business tea m mean for india? our india business team makes it down. —— breaks it down. the goods and services tax, the gst, will unify india into a single market. businesses will pay one tax rather than several state and federal taxes that they pay at the moment. there are four basic rates, five, 12, 18 and 20 8%. most goods and services were signed a tax rate. there are some exceptions like milk and vegetables. —— 28%. india's finance minister says gst could lift growth as much as 2% by streamlining tax collections, so the government can make more money. businesses are worried that they are not ready for the tax overhaul. it has been a good six months for asian share prices despite concerns over rising interest rates in the us. stock markets across the region have rallied. looking at the

rishaad: tell me, are you guys gst?only seemed yesterday that we were talking about the problems in getting it all past. has it been thought through properly? there must be concerns on the ground. >> there are serious concerns on the ground. legally, it is clear. it has been many years in the works. it has passed through several state assemblies and so on, but implementation on the ground is the problem, many small and medium-sized japan are's don't have the infrastructure to get this going. the large guys can hire someone to implement this for him. second, many people do not know how this will work. the third one is cost of collides compliance. 37 times of the year is a lot of paperwork for someone running a small business. people expect this to get ironed out over the next couple of weeks, but near-term disruption is inevitable. disruptions will take place for the next 3-4 reads before some sort of clarity comes from the government, but everyone is expecting this to happen. rishaad: thank you so much for that. mumbai.

a gst council made up of state and federal finance ministers had relaxed filing procedures for the firsttwo months. the gst is the biggest tax overhaul in india since 1940 seven, following a decade-long effort to simplify the countries tax regulations. the finance ministers of china and south korea have held their first direct talks in almost one year. they met at the aiib summit. they agreed to cooperate more closely. for, buts what we hope given that there are still some delicate diplomatic issues it too early for us to hope the barriers will all be away.ight given my meeting with the minister and economic data led channels the two have, we hope that nontariff barriers and the restriction on the package tours will be eased as early as possible. >> 3 days after thbrexit referendum, formal negotiations are about to start. brexit secretary david davis and european commission chief helotiator mike michaud bee banier -- on u.k. wants parallel talks the splits and trade links, but the e.u. insist that is not possible. global news, 24 hours a day, 000ered by more than 27 0 this is bloomberg.

att but not least, looking something beyond that and we are looking at india's gst comes to affect overnighta.m. in hong kong. i am haidi lun. rishaad: i am rishaad salamat coming to you from bloomberg's asia headquarters in hong kong. this is "bloomberg markets: asia." ♪ haidi: asia-pacific markets pair monthly gains. central banks adopt a hawkish tone. foraad: the search

indian sites having to work, to continue working towards improving inbusiness , what has been done in gst for example, but it's a work which is still in progress. so my answer to prime minister modi would be keep at it. >> 109 people, maybe that's something. >> and he's top 50 if not top 10, that's a problem. >> and my art from president trump would be this is gone from a zero-sum game. >> is a win-win opportunity, if you grow this by winning for america. >>. >> similar, i would say from prime minister modi. >> you guys agree too much, that's not a good sign. >> a lot of good ideas coming out here. >> so from prime minister modi i would say we certainly recognize his commitment to modernizing indians infrastructure and from a ge perspective obviously we see lots of opportunities there. across many different industries and we think it's good for business, we think it's good for india, indians, the economy, the environment, we see a lot of positive ways that we think we can bring solutions to improving life in india and leveraging the tremendous assets india has india offers our country. >>

i do believe that the effect of the demonetization, the gst likely to set them by the first of july this monsoon being predicted this year, the growt'' s revival will take place. the one important challenge we have is in regard to the private sector investment. we do believe that the global curve is also turning the turning slowly. domestic consumption is improving and hopefully we are able over the next euro so to address the problem of the indian banking system itself. we will again pick up significant growth. jonathan: minister, and the first quarter, there was a slowdown on gdp. the estimate is still 7% for the full year 2017. how much capacity do you have to push forward to enable these banks to have more public sector bank mergers? is that something you can achieve without pushing growth further down? well, i think the merger itself will only strengthen the indian banks. it will not weaken them. it will not weaken the capacity of the banks to support growth. i don't think india needs numericabllly a large number of banks. we have foreign banks, private sector banks, payment banks.

that in the form of value added taxes, vat or good and services taxes, gst. these average 17% global and act as tariff and subsidy replacement. most european nations have vat rates between 17 and 22% and every american exporter into the eu has to pay those rates to sell their products there. when mexico agreed to nafta, they abolished most of their tariffs but raised mexican vat to 15%, built a new tax wall for american products. india now in the process of adopting goods and services tax. furthermore any country that wants to mimic currency devaluation can increase vat and use produce for other domestic taxes. in reality i believe tax policy and trade policy go hand in hand. i believe tax policy has far greater effect on trade than any trade agreement ever could. good tax policy, one that encourages domestic trade and exports is, increase, good trade policy. moreover it's unilateral. we don't need to negotiate with anyone. we don't need to ask permission from international body and don't have to risk a trade war. remember, every one of our trade partners has