New Delhi : Unfazed by the official data on Friday showing that the Indian economy will grow at a slower pace compared to the last fiscal, NITI Aayog Vice Chairman Rajiv Kumar has said the GDP growth will become more robust in 2018-19.
Kumar’s remarks came after Chief Statistician T.C.A. Anant announced that Indian economy was expected to grow at a slower 6.5 per cent in 2017-18 compared to the 7.1 per cent in 2016-17.
Reacting on the growth estimates, Kumar said the GDP growth in the second half of 2017-18 had risen to seven per cent bringing the annual growth rate to 6.5 per cent.
According to a statement issued by the NITI Aayog, Kumar pointed out that economic activity had been picking up over the last three quarters and can be expected to strengthen in the coming period “with the manufacturing Purchasing Managers’ Index (PMI) now reading at a five-year high of 54 per cent, and FMCG demand picking up briskly”.
“Hence the GDP growth will become more robust in 2018-19.”
He added that the estimates assume significance in the wake of the fact that the higher second half growth had come despite a weaning of public sector expenditures which had peaked in 2016-17 on account of the implementation of the Seventh Pay Commission recommendations.