Indian economy to grow around 8%, farm sector over 4% in FY17: Shaktikanta Das

Economic Affairs Secretary Shaktikanta Das has expressed his hopes that the recent series of government reforms would help India clock GDP growth of around 8 per cent, while the farm sector can grow by more than 4 per cent in FY17.

He pointed that last year the country achieved the growth of 7.6 per cent which was driven by good agriculture, therefore they are looking at growth upwards of 7.6 per cent and hopefully close to 8 per cent. He added that the GST will happen as bankruptcy law has happened. Both these pieces of legislation together with amendments to the arbitration law, DRT, company laws have potential to create a very vibrant and dynamic economy. Asserting that the government is determined to implement GST from the next fiscal, Das expressed confidence that the revenue neutral rate structure will be decided in the next meeting scheduled in November 3-4. Das also sounded optimistic about the economy’s medium-term growth prospects as he hoped that reforms unveiled by the government would take hold in coming years.

Das also said that economic Survey in February had projected a growth rate of 7-7.75 per cent while RBI forecasted 7.6 per cent for the current fiscal. Growth projections drawn up by the World Bank and International Monetary Fund are closer to RBI’s forecast figure.