Wrong to say India on 5 per cent growth trajectory, says Bibek Debroy

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Published: September 20, 2019 2:27:46 PM

Allaying fears of an economic downturn, he said there have been instances in the past when GDP growth fell below 5 per cent during a quarter, but recovered to 7 per cent in the very next quarter.

Bibek Debroy, growth trajectory, indian economy, gst growth, gst collection, economic downturn“One quarter of 5 per cent does not mean we are on a 5-per cent growth trajectory,” Debroy said at the CII Banking Colloquim here. (PTI photo)

Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM) Bibek Debroy on Friday it would be incorrect to conclude that India is on a 5-per cent growth trajectory on the basis of just one quarter’s GDP print. The GDP growth in the April-June quarter of the 2019-20 fiscal was 5 per cent, according to government data. “One quarter of 5 per cent does not mean we are on a 5-per cent growth trajectory,” Debroy said at the CII Banking Colloquim here.

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Allaying fears of an economic downturn, he said there have been instances in the past when GDP growth fell below 5 per cent during a quarter, but recovered to 7 per cent in the very next quarter. Debroy also said GST collection has been revenue negative so far instead of being revenue neutral.

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