Published On: Thu, Aug 31st, 2017

As a result of demonetisation, GST-Q1 GDP growth fell to 5.7%, Jaitley said.

India’s GDP growth plummeted in April-June to 3-year low of 5.7 percent, lagging behind China in the second straight quarter.

Arun Jaitley on demonetization - india24x7news

Arun Jaitley on demonetization – india24x7news

 

Finance Minister Arun Jaitley said today that Quarter 1’s 5.7% GDP development is a matter of government and policymakers concern. Arun Jaitley said the numbers definitely pose a challenge to the government while addressing the media.

In the coming quarters, we really need to work on both–in terms of policy and investment–to enhance these numbers, “he added. However, he did not rule out the instant impacts of Goods and Services Tax (GST) on the economy, particularly the casual one.” Most companies were de-stocking, which is why trading increased as sales took place but stocks were being sold, “he said.

Contradiction between enhancing service and fundamentally decreasing production is the effect of GST, he added in his address.

India’s GDP development slowed to a three-year low of 5.7% in April-June— China lagging for the second consecutive quarter— as production slowed ahead of GST start-up in the midst of demonetisation.

Arun Jaitley on demonetization - india24x7news

Arun Jaitley on demonetization – india24x7news

China recorded development of 6.9 percent in January-March as well as in the quarters of April-June. Gross national product (GDP) development was 6.1% in the previous quarter and 7.9% in the last fiscal period. In January-March 2014, the past low of 4.6 percent was reported.

 

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