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Growth rate to remain unaffected by GST: ADB

Updated: Jul 21, 2017 09:30:23am
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Growth rate to remain unaffected by GST: ADB

New Delhi, July 21 (KNN) Dismissing apprehensions over the impact of the Goods and Services Tax (GST) on the country’s economy, the Asian Development Bank (ADB) maintained that the economy would continue to grow.

Asian Development Bank (ADB) in its publication Asian Development Outlook made 2017 made these comments.

Commenting upon the impact of demonetization in the country, ADB said that the economic growth did slow down to 7.1 per cent. It further observed that other factors including discouraged private sector investment and poor bank credit.

Also the data from the first quarter suggests that the manufacturing sector registered positive growth as the purchasing managers index went up from 51.2 to 51.7.

Predicting growth, ADB added that the increase in consumption is likely to be the run the engine of growth. Also higher crop sowing and a sound monsoon will help consumption increase in the rural areas as wages are likely to increase. The Urban consumption is expected to increase with the projected pay hikes of the central and state government employs.

Stating the Goods and Services Tax (GST) and its impact on the growth rate, ADB said that with the coming of GST, ease of doing business will get a boost, adding to the overall growth rate in the country.

ADB had earlier predicted growth at 7.4 for the current fiscal and 7.6 for the next year. (KNN/ DA)

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