CII backs government on GDP growth

MUMBAI: Even as the government came under attack from several skeptics that challenged its 7% GDP growth in December quarter CII has come in favour of the government.

Naushad Forbes, President, CII, said that the recently released GDP figures, which indicate some moderation in growth during FY2017, also shows that our growth rate continues to remain strong at around 7%.

“The impact of demonetisation is showing to be transient and we are likely to reach higher growth levels in the coming quarters. Most large businesses have made efforts to integrate their supply chains into cashless payment systems and this will soon yield benefits in terms of higher efficiency and productivity of the economy,” said Forbes.

A day before a Nomura report questioned India's GDP data. The report asked whether India's GDP data is a fact or fiction.


“The discrepancy between the official GDP statistics (robust) and ground-level data (weak) has been a concern ever since the start of the new GDP series. The gap has become even more glaring in the aftermath of demonetisation," the report said.

With rural demand likely to remain strong, companies are looking forward to a further growth in consumption across sectors. On investments, Dr Forbes felt that “the government has provided a positive environment for a turnaround to take place. The Budget has increased allocations for public investments and reduced tax rates for the small and medium sector. GST implementation is also going ahead as per the schedule, said Forbes.

“With demonetisation and its effects behind us, "it is important that focus return to the many useful policy measures such as ease of doing business, make-in-india and GST that can raise our growth rate to near double digits and meet the aspirations we all have for the country", said Forbes.