Downturn over, more growth in next two quarters: Niti VC

Thursday 28th September, 2017

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Downturn over, more growth in next two quarters: Niti VC
NITI AAYOG vice-chairman Rajiv Kumar on Wednesday said the economic downturn which began in the last two years of UPAII regime has bottomed out and the growth will improve in the next two quarters.
Kumar also admitted that there have been problems on account of demonetisation and Goods and Services Tax (GST) im-plementation but now people have adopted to the new tax regime.
"..this downward cycleof economic growth began in the last two years of the UPA II government and that downward cycle in my view has bottomed out" "We will be achieving higher
growth in the next two quarters, and 1 thinl<2018-19 will be much better than the current year (in terms of economic growth)," he said at die A1MA diamond jubilee convention here.
India's economic growth has slipped to a three-year low of 5.7 per cent in the first quarter of the current fiscal.
The Niti Aayog vice chairman also pointed out that in manufacturing and services PMI, the lowest point reached injuly and from there it has started rising.
Kumar noted that historically countries which have adopted GST have all seen some decline in the growth rate because the system struggles to come to new norm.
"This formalisation of economy is going to take some cost," he observed.