June 2: Painting a rosy picture of the economy in the days to come, the NITI Aayog has said that the Indian economy is set to go through a good turnaround during the current quarter.
NITI Aayog Vice Chairman Arvind Panagariya sounded optimistic when he said that the impact of the Union government’s demonetisation drive in November last has faded off, and the economy is all geared up to usher in good times.
The positive signals may be seen as a trouble-shooting attempt after concerns were raised by many in the country owing to the economic growth hurtling down to 6.1 percent for the January-March quarter. The data that came out showed the GDP had touched the lowest terrain in more than two years.
The demonetisation drive , it may be recalled, had dumped 86 percent of currency out of circulation in November last year and pushed the common man into long hardship.
According to Panagaraiya, the economic growth is expected to race to 7.5 percent in the current fiscal ending March 2018. The year on year growth in 2016-17 had been 7.1 percent, slower than 8 percent growth recorded a year ago, reports citing the GDP data said.
Union Finance Minister Arun Jaitley had on Thursday shrugged off allegations that the GDP dip was due to demonetisation of higher value currency notes announced by the government on November 8 last year. He stressed that the decline was due to several other factors, including the global situation. He had added that some slowdown was visible even prior to demonetisation.
According to GDP data released on Wednesday, growth rate slipped to 6.1 per cent in the January-March quarter and 7.1 per cent, the lowest in the three years, during 2016-17. Moreover, India lost the status of world’s fastest growing economy to China, which has grown 6.9 percent during the same period.