Economic growth of India may report its slowest growth in four years during FY18, according to a report released by Central Statistics Office (CSO).
However, the slowdown is expected to pace up by the second half of the year.
As per the report, the Gross Development Product (GDP) is reported to be growing at 6.5 per cent in FY18. This growth is 7.1 per cent lower than the last year’s growth.
Further, Gross value added (GVA) growth is projected to be 6.1 per cent as compared to 6.6 per cent last year.
Reportedly, the GDP’s growth was just 6 per cent due to the disruption caused by the Goods and Services Tax (GST) and the ongoing effect of demonetisation.
“GDP rise of 6.5 per cent reported for 2017-18 suggests a hike of 7 per cent for the second half,” said Subhash Chandra Garg, Secretary, Economic Affairs .
“Confirms strong turnaround of economy. Investment growth of almost twice of last year’s indicate investment reviving, “, he said.
“Effectively, we are calculating the H2 growth in the economy at around 7 per cent… maintain the trend of increasing growth,” said TCA Anant, Chief statistician, Central Statistics Office (CSO).
The estimates pertaining to manufacturing includes GST’s impact calculated in the initial quarters.GST was rolled out on July 1, last year.