New Delhi : Finance minister Arun Jaitley on Thursday said that despite the noise about demonetisation hurting the economy, the growth rate expected to moderate from 7.1% in FY17 to 6.7% in FY18 and the slowdown was partly due to de-stocking ahead of the GST launch in July.
“Demonetisation had its own disruptive impact. India’s growth rate was 7.1% last year. Was there a two percentage point decline next year?” the minister said in the Lok sabha while replying to the Budget discussion. He added that India is projected to regain the tag of being the fastest growing major economy next year.
Taking off from where PM Narendra Modi left on Wednesday, the FM said that the government had inherited a weak economy with high fiscal deficit and high inflation.
He said that the government had undertaken several structural reforms – from GST and the Insolvency Code to linking subsidies with Aadhaar, something that he accused the previous UPA-led government of abandoning. “The difference between UPA and NDA is that we know how to bite the bullet when decisions have to be taken.”