Investing in India? Get Equitymaster Research  

GDP at 3-year Low Post Notebandi and GST

On This Day - 1 September 2017
« GDP at 3-year Low Post Notebandi and GST »

Indian GDP growth hit a three-year low of 5.7% in the June quarter. The aftereffects of Notebandi and the Goods and Service Tax (GST) were mainly responsible for the slowdown. The growth was much lower than analyst estimates of around 6.6%.

Manufacturing growth stunted to 1.2% during the quarter compared to 10.7% a year ago. The transition to the GST regime affected the sector as dealers de-stocked and manufacturers offered discounts before GST took effect.

As we have been saying, GST is a much-needed economic reform. It should eventually expand India's narrow tax base and increase government revenues.

After this decline, the upcoming few quarters will be critical. Growth is expected to normalise as businesses start aligning themselves to the post-GST regime. But only growth will determine how well the Indian economy has adapted to GST.

Data Source: Ministry of Finance, Government of India

This Chart Of The Day was published in The 5 Minute WrapUp - If You Can Read This *REALLY* Boring Document, You Can Get Ahead of the Curve
 
 
 
Equitymaster requests your view! Post a comment on "GDP at 3-year Low Post Notebandi and GST". Click here!
  
 
 
 Our Most Popular Charts
Claim settlement ratio of insurance companies»
This chart shows claim settlement ratio of life insurance companies... Read On