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Niti Aayog sees economic turnaround in April-June quarter

LiveMint logoLiveMint 02-06-2017 Rajesh Kumar Singh

New Delhi: One of Prime Minister Narendra Modi’s top advisers said that the pain caused by the government cash clampdown late last year was over and the economy would see a “good” turnaround in the current quarter.

Niti Aayog vice-chairman Arvind Panagariya’s comments on Friday came days after data showed that India’s annual economic growth unexpectedly slipped to 6.1% in the January-March quarter, its lowest in more than two years.

The economic growth is expected to pick up to 7.5% in the fiscal year that ends in March 2018, he said.

Asia’s third-largest economy grew 7.1% year-on-year in 2016/17, slower than 8% growth a year ago, data this week showed.

The government’s shock decision last November to outlaw high value old banknotes took 86% of currency out of circulation virtually overnight, pounding consumer demand as most people live in the cash economy.

Panagariya also said it would be “very, very difficult” to privatise state-run Air India, given the carrier’s current debt load. Reuters

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