Government released data, expected to reduce GDP growth to 6.5 percent in 2017-18


Government released data, expected to reduce GDP growth to 6.5 percent in 2017-18

For the fiscal year 2017-18, the government has released a forecast of the GDP of Gross Domestic Product (GDP) for the country. According to the Central Statistics Office, this year it is expected to grow at a rate of 6.5 per cent, which is less than last year. Let me tell you that in 2016-17, the GDP growth rate was 7.1 percent. At the same time, the GDP growth rate was 8% in 2015-16. Overall, this estimate seems to show a decrease in the growth rate. This prediction is also important because the Finance Ministry is preparing for the 2018 budget and it will be presented on February 1.

According to this forecast, growth in agriculture, afforestation and fishing sector is expected to be 2.1 percent, whereas in these areas, 4.9 percent growth was recorded in the year 2016-17. At the same time, the manufacturing sector is expected to grow by 4.6 percent, while 7.9 percent was recorded in 2016-17. The growth in financial, real estate and professional services sector is expected to increase by 7.3 percent, which was recorded at 5.7 percent in 2016-17.

The GDP growth rate was 6.3 percent in the month of September, which came down to the lowest level of almost 5.7 percent in the April-June quarter. It was at the lowest level of three years. According to the figures released last week, the economic growth rate in the April-June quarter was at the lowest level of three years. For this, the government's decision like GST and notebook was held responsible.

In a private sector survey, it was shown on Tuesday that in the last five years in December the factory activity has expanded at the fastest pace. Let me tell you that before April-June, the growth rate was 5.7 per cent, which was the lowest level of about 3 years. At that time, the market had given signals of this decline even before the commodity and service tax, which came into effect from July 1 of GST.

It is believed that the hiccups in the current year have been impacting the economic growth rate due to the implementation of GST. Commerce Minister Suresh Prabhu told NDTV "The issues related to GST are being corrected. We have removed the problems of exporters in October and they will be removed from all the issues that are coming up."

These figures clearly show that the most important manufacturing and decline in the growth rate in the agricultural sector from the point of view of employment is a clear indication that in the coming days, Modi Government will have to face many challenges on the economic front. It will be important to see now how the finance minister deals with these challenges in the budget that will be introduced in the beginning of next month.