The country's economic fundamentals remain strong and the “transitional effects of demonetisation and GST“ are over, FM Arun Jaitley said as the government mounted a strong defence of the health of the economy. “Our aim is to maintain India as a high growth economy,“ Jaitley told a news conference to unveil a mega bank recapitalisation package.
Economic affairs secretary Subhash Garg said several economic indicators such as index of industrial production, core sector, automobiles, consumer spending pointed to a strong growth pick-up and there were expectations of “very good growth from second quarter of the current financial year itself.“ He said the temporary economic slowdown was “bottoming out.“
An improving global economy is expected to help exports, which is reflected in strong growth of 25.6% in September 2017, with April-September averaging around 12%. Jaitley said he was hopeful of private investment rising on the back of the measures unveiled so far and spending on infrastructure.