Slowing down of GDP growth is a ‘matter of concern': Jaitley
Hours after the government announced the country's GDP growth for the first quarter of this financial area, Union Finance Minister Arun Jaitley on Thursday said that slowing of the GDP was a "matter of concern".
Amid the after effects of the demonetisation and GST implementation, the government data on Thursday stated that India's Gross Domestic Product grew by 5.7 per cent during the first quarter (April-June) of the financial year 2017-18.
Speaking to the media, Jaitley said, "It is certainly a matter of concern that first quarter GDP has come down to 5.7% and it, therefore, throws up a challenge for the economy."
"In coming quarters we really require to both, in terms of policy and investment, to work to improve upon these figures," he added.
He said that the country is expected to have a good monsoon, which would have a "positive impact".
"Contradiction between service improving and manufacturing going down essentially is the GST impact," he said.
The government is likely to draw opposition's flak over the Q1 GDP data as the GDP growth rate for the same quarter last year was 7.9 per cent.
Reports say that manufacturing was impacted by uncertainty surrounding GST.
In February, Finance Minister Arun Jaitley said that the drop in economic activity due to demonetisation was only transient and its effect would not spill over to the next financial year.
The IMF had earlier this year said demonetisation would have only short term impact on the economy and it would bounce back to its expected growth of more than eight per cent in the next few years.