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India to grow 8% in FY19 as GST benefits kick in: Das

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The Indian economy will grow eight per cent in the next financial year as the full year impact of the goods and service tax (GST) will be seen by that time, Economic Affairs Secretary Shaktikanta Das (pictured) said. The eight per cent growth rate in FY19 will compare to a projected 7.5 per cent gross domestic product expansion in the current financial year and 7.1 per cent of 201617. Speaking on the sidelines of the Asian Development Bank´s 50th annual meeting, Das said, while the government continues to step up on reform measures, the country´s largest ever demonetisation of currency notes led to widening of the tax base and curbing of a parallel shadow economy."Impact of demonetisation was very very transient and has not spilled over to the current financial year...After demonetisation, the rates have come down, there is scope for further transmission of rates.I would expect that to happen.We see signs of revival in credit cycle," he added.The rupee has been Asia´s best performer this year and its rising clout against the US dollar has been aided by a hands off approach by the RBI.The government is not targeting any level for the rupee and will leave it to the market to decide that, he said.

Business Standard New Delhi, 06th May 2017

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