Union Minister Rao Inderjit Singh has indicated there is no worry despite lowest Gross Domestic Product (GDP) growth in 5-6 years. Singh has said that Indian economy is resilient and there is no cause for apprehension on decline in Gross Domestic Product (GDP) with a slew of steps directed at boosting it. He said ‘the economy grew only at 4.5% in the second quarter of this year. It is also true that in the past five or six years this is the lowest growth of the GDP. But I would also suggest that this is not a cause for apprehension and there are precedents before this in various years when the economy has gone down even further than 4.5%. But it bounced back.’
However, he mentioned that the demand and supply system is not as good as it should have been. Farming is one sector where the economy has been suffering. Though, he said the International Monetary Fund and other multi-lateral organisations continue to underline a positive outlook on Indian economy and ‘I am sure that the economy in the coming months and years would improve.’
Besides, with an aim to boost GDP growth, he said the government has been undertaking various measures. Introduction of Insolvency and Bankruptcy Code (IBC) in 2016 is directed towards strengthening the financial system of the country, implementation of Goods and Services Tax in 2017 is an important measure for rationalisation of tax structure and improving ease of doing business. He also said that continuous liberalisation has led to an increase in inflows of foreign direct investment into the country.
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