India: Momentary economic slowdown anticipated

**By APD writer

Rishika Chauhan**

**NEW DELHI, January 6 (APD)- **According to Central Statistics Office estimates, the Indian economy is expected to grow at its slowest pace in four years, however recovery is anticipated soon.

Data indicates that in 2017-18 the economy would expand at 6.5%, thereafter growth would be faster.

Through social media, the Economic Affairs Secretary, Subhash Chandra Garg informed, “Gross Domestic Product (GDP) growth of 6.5% for 2017-18 implies growth of 7% for the second half. Investment growth of almost twice of last year’s indicates investment reviving.”

The expected growth rate is the lowest since the government led by Prime Minister Modi, assumed office in May 2014. Meanwhile, experts have blamed the government’s new policies for the slow growth.

The manufacturing and agriculture sectors have particularly been affected. Demonetization of 500 and 1000 currency notes in November 2016 is said to have disrupted supply chains in the informal economy.

Moreover, introduction of a new indirect tax called the Goods and Services tax (GST) has also led to confusion and delays in refunds to exporters.

However, the slowdown is believed to be temporary. Economist, Aditi Nayar, explained that the estimates are based on incomplete data from different sectors, economy might pick pace mid way and have a favourable effect on the GDP.

Sectors like, electricity and trade, as well as the hotels industry is expected to grow at a faster rate of 7.5% and 8.7% in 2018, which is higher than their growth rate of the previous year.

(ASIA PACIFIC DAILY)