According to interim Finance Minister Piyush Goyal, double-digit economic growth is possible in India by as early as the fourth quarter of the current fiscal year. His statement comes after India’s GDP witnessed a solid 7.7% growth during the fourth quarter (January to March) of the previous fiscal year. He also noted that the Central Government is taking steps to keep the fiscal deficit under 3.3% compared to last year’s value of 3.5%.
His statement on the country’s economic growth came while addressing the Growth Net 6.0 conference. According to him, the economic growth will be propelled by an increase in demand across the country. India is a huge marketplace with over a billion consumers, and this will help the country achieve rapid economic growth. He also noted that the government is doing its part in making it easier to do business in the country.
In India, GDP growth has never touched the double-digit rate ever since the new method of computing national income came into place. The highest ever quarterly growth witnessed so far is 9.3%, which was recorded during the fourth quarter of the fiscal year 2015-16. While the overall GDP for the fiscal year 2017-18 was a moderate 6.7%, the fourth quarter growth of 7.7% is one of the highest in the recent years.
For the fiscal year 2017-18, fiscal deficit stood at 3.53% which is in line with the estimates (revised from 3.2%) put forth by the government. However, for the upcoming fiscal year, the government is optimistic that it would meet its fiscal deficit target of 3.3%.
Commenting on the upcoming GST Council meeting, he noted that the upcoming meeting will also discuss the issue of bringing petroleum products under GST. As of now, five petroleum products including petrol, diesel, natural gas, etc., have been kept out of the GST bracket. The upcoming council meet will discuss this issue and decide on whether or not to bring these products under GST.
Source: Financial Express