India Has Standardised Itself For 7-8% Growth: Arun Jaitley

GDP numbers 'very encouraging': Key facts
Has the tide turned?

03 December, 2017

"India has standardised itself ordinarily for a growth rate between 7 to 8 per cent".

Ratings agency CRISIL's research arm pointed out that the rise in GDP growth signalled the fading impact of demonetisation and destocking that preluded the implementation of GST.

"It is well accepted that investment in infrastructure is essential to growth, it increases the productivity of existing resources and crowds in private investment, which in turn creates more jobs and leads to economic well-being", he said.

"GDP growth recovers to 6.3% in Q2 from a 3-year low of 5.7% in Q1".

"The government should look at further consolidating its reform agenda in the forthcoming Union Budget 2018-19 to be announced two months from now to give further boost to investment", Patel added. With the January-March quarter result, India had lost its fastest growing economy to China, which grew at 6.9 per cent. In the fourth quarter of 2013-14, economy had grown at 4.6 per cent.

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New Delhi:Finance Minister Arun Jaitley said the Goods and Services Tax (GST) has made doing business easier for traders by expanding the market place and reducing tax compliance burden.

"Manufacturing reported growth of 7 per cent, electricity, gas and water supply at 7.6 per cent, and trade, hotels, transport and communication grew at 9.9 per cent", he said. "Gross fixed capital formation has also picked up from last year's lacklustre pace", he said.

The Finance Minister further said, "The deceleration in overall growth witnessed since the first quarter of the last fiscal has been reversed and the economy now seems to have weathered the transitional challenges experienced earlier in the year and appears poised for a durable recovery going forward". "It's possible that anticipating the need for the festive season, most of the production went into the sale and inventory restocking may happen later...inventory accumulation effect may persist in the third quarter as well", he explained.

"Manufacturing has emerged as bright spot at seven per cent but agriculture remains an area of concern with mere 1.7 per cent in the second quarter against 2.3 per cent in the previous quarter".

The expansion in GVA in the first half of the current fiscal has been estimated at 5.8 per cent, down from 7.2 per cent in the year-earlier period. The growth in public administration, defence and other services also stood at 6 per cent.

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