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India to show sustained growth of 8% in few years: Arvind Panagariya

LiveMint logoLiveMint 02-06-2017 PTI

New Delhi: India’s “fragile economy” has been turned around in the last three years and a sustained growth of 8% would now be possible within a few years, Niti Aayog vice-chairman Arvind Panagariya said on Friday.

The statement comes amid the country losing the fastest growing major economy tag to China with its gross domestic product (GDP) growth rate slipping to 6.1% in the January-March quarter of last fiscal. China, in contrast, recorded 6.9% growth during the quarter.

“Modi government had inherited a rather fragile economy. We will grow at 7.5% in the current year and before present term of the government ends, I would expect we would touch 8% mark and probably enter another sustained growth trajectory of 8% plus by the time government completes its term,” Panagariya said at a press conference.

India’s growth slipped to 3-year low of 7.1% in 2016-17 on account of poor performance of manufacturing and services sectors. The GDP growth was at 8% in 2015-16 and 7.5% in the previous year.

On 9 November 2016, the government had demonetised higher value currency which wiped off about 87% of notes in circulation, leading to a severe cash crunch and disruption in the economic activities.

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