Pegging the Goods and Services Tax (GST) and the Insolvency and Bankruptcy Act as some of the biggest economic reforms undertaken by the NDA government, Niti Aayog vice-chairman Arvind Panagariya said that India will witness GDP growth of 7.5 per cent in 2017-18 before entering a sustained growth trajectory of over 8 per cent before the end of the present government’s term in 2019.
“The government had inherited a rather fragile economy. Growth had been set back, particularly, in the year 2012-13, when it dropped to about 5.5 per cent. Going forward, I expect growth to be around 7.5 per cent in the current year and before present term of the government ends, I would expect we would hit the 8 per cent mark and probably enter another sustained growth trajectory of 8 per cent plus by the time the government completes its term,” Panagariya said, at a press conference highlighting key initiatives of Niti Aayog in the past three years.
“GST is clearly the most important reform that has been done. Second, very important reform includes the Insolvency & Bankruptcy Act, which is going to be very important for growth, along with us now coming forward to address the non-performing assets (NPAs) in a true, serious manner. Infrastructure, I would particularly like to say, has received an impetus in 2016-17. Particularly, if you look at roads, it has seen huge acceleration in 2016-17,” he added.
Panagariya’s statement comes shortly after India losing the fastest growing major economy tag to China with the GDP growth rate slipping to 6.1 per cent in the January-March quarter of 2016-17, which according to economists was largely on account of the Centre’s note-ban decision, which was announced in November.
Compared with this, China recorded 6.9 per cent growth during the quarter. India’s growth slipped to 3-year low of 7.1 per cent in 2016-17 on account of poor performance of manufacturing and services sectors. The GDP growth was at 8 per cent in 2015-16 and 7.5 per cent in the previous year.