Foundation laid for putting GDP on 8%-plus growth trajectory: Rajiv Kumar

NEW DELHI: The Rs 1.45 lakh crore fiscal stimulus rolled out last week will help reverse the economic slowdown and give a push to consumption, Niti Aayog vice chairman Rajiv Kumar said on Monday and forecast that the GDP growth will rebound to more than 7.5% in the second half of this financial year.


“The stimulus will strongly rekindle investors’ animal spirits. This bold step has laid the foundation for taking the economy on to a higher, 8% plus growth trajectory. I expect the second half of FY20 (October 2019-March 2020) to clock higher than 7.5% GDP growth,” Kumar said in an


Indian economy grew at a six-year low of 5% in the April-June quarter, prompting the government to announce a host of measures including corporate tax rate cuts last week. “Consumption is intrinsically linked to the rate of growth of GDP and to future expectations. Both these will be strongly reinforced by the package announced on Friday,” said Kumar.

Putting to rest apprehensions that India might slip on the fiscal target, the Niti Aayog vice chairman said that on the contrary the rate cuts will help improve tax compliance with higher buoyancy on account of the expected acceleration in GDP growth.