GST disruption, farm loan waivers to keep GDP from reaching 7.5, says CEA Arvind Subramanian

GST disruption, farm loan waivers to keep GDP from reaching 7.5, says CEA Arvind Subramanian

The policy makers need to come up with all the possible tools to revive growth, Chief Economic Adviser Arvind Subramanian said.

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PTI
  • Aug 11, 2017,
  • Updated Aug 11, 2017 8:54 PM IST

The Indian economy has seen an across-the-board deceleration in activity and requires policy makers to come up with all the possible tools to revive growth, Chief Economic Adviser Arvind Subramanian said on Friday.

The likely growth this fiscal will be towards the lower end of the 6.75-7.5 per cent band suggested in January-end, mainly because of downside effects of factors like the appreciation of the rupee, farm loan waivers and transitionary challenges from implementing GST, he said.

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The only upside possibility is exports growth.

"Farm loan waiver will be deflationary exerting a drag on growth in short run... We are not changing the growth forecast, but we are saying that because of all these risks it is less likely that we will see outcomes towards the upper end of the forecast," said Subramanian.

The Indian economy has seen an across-the-board deceleration in activity and requires policy makers to come up with all the possible tools to revive growth, Chief Economic Adviser Arvind Subramanian said on Friday.

The likely growth this fiscal will be towards the lower end of the 6.75-7.5 per cent band suggested in January-end, mainly because of downside effects of factors like the appreciation of the rupee, farm loan waivers and transitionary challenges from implementing GST, he said.

Advertisement

The only upside possibility is exports growth.

"Farm loan waiver will be deflationary exerting a drag on growth in short run... We are not changing the growth forecast, but we are saying that because of all these risks it is less likely that we will see outcomes towards the upper end of the forecast," said Subramanian.

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