Wednesday, May 31, 2017

Growth at 7.1% due to demonetization effect, optimistic about current year growth at 8%


Real GDP growth at 7.1% at 2011-12 prices is in line with expectations vis-à-vis impact of demonetization on various sectors of the economy such as mining, manufacturing, construction and trade sectors, said Mr. Gopal Jiwarajka, President, PHD Chamber of Commerce and Industry.

 Growth in manufacturing sector has declined from 10.8% in 2015-16 to 7.9% in 2016-17; growth in construction sector declined from 5% in 2015-16 to 7.8% in 2016-17; growth in mining sector declined from 10.5% in 2015-16 to 1.8% in 2016-17 and growth in trade &services declined from 10.5% in 2015-16 to 7.8% in 2016-17.

 We look forward to a good GDP growth with three major positive developments taking place in the current year i.e positive effect of demonetization, implementation of GST and low inflationary expectations vis-à-vis IMD forecasts a good monsoon, said Mr. Jiwarajka

 Growth is expected to be at around 8% in 2017-18, he said

 The growth rate of agriculture and allied sector at 4.9% in 2016-17 is inspiring and we expect more reforms to come in the sector to strengthen the growth further in a sustainable trajectory, said Mr. Jiwarajka.

 Focus on food processing sector would help in creation of employment opportunities, increase in rural incomes and will boost the manufacturing growth, he added

 Reforms in the construction sector for ease of doing business would go a long way to improve India’s business environment, attract investments and to absorb unskilled, semiskilled and skilled workforce, said Mr. Gopal Jiwarajka.

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