India growth story intact, GST to boost growth: FICCI

24 Jul '18

1 min read

The Indian growth story is intact with the gross domestic product (GDP) expected to grow around 7.5 per cent in this fiscal and improve further. The slowing down of the industrial output growth in May to 3.2 per cent and the inching up of the retail inflation in June to 5 per cent are short-term challenges, according to a top Indian industry federation.

The challenges are being pro-actively addressed by the government and the Reserve Bank of India, and these should not be seen in any way as significantly hurting the signs of revival in the economy, said Federation of Indian Chambers of Commerce and Industry (FICCI) president Rashesh Shah.

"While the industrial output growth is expected to rebound in the next few months; the rise in inflation is being watched by the RBI closely, and the apex bank and the government will certainly take necessary measures to keep it at the manageable levels," a FICCI press release quoted Shah as saying.

The goods and services tax (GST) collection trends clearly indicate a positive sentiment in the economy and the tax structure will also bring down inflation, he added. (DS)

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