Niti Aayog vice-chairman Rajiv Kumar on Wednesday said the economic downturn which began in the last two years of the UPA II regime has bottomed out and 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) implementation, but now people have adopted the new tax regime.
This downward cycle of 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 I think 2018-19 will be much better than the current year (in terms of economic growth),” he said at the All India Management Association diamond jubilee convention here.
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 a new norm.