India's economy slowed down in 2016-17: Arun Jaitley tells Parliament
New Delhi, Dec 29 (IBNS): Union Finance Minister Arun Jaitley on Friday said India's economy slowed down in the 2016-17 session.
Jaitley informed in the Parliament that as per the latest estimates from Central Statistics Office, the growth rate of Gross Domestic Product (GDP) at constant prices was 7.5 per cent, 8.0 per cent and 7.1 per cent respectively in 2014-15, 2015-16 and 2016-17.
"Slower growth in 2016-17 reflects lower growth in industry and services sector. Economic growth of a country depends on a number of factors including structural, external, fiscal and monetary factors," Jaitley said in the Parliament.
" Lower rate of global economy in 2016, along with a reduction in gross fixed investment to GDP ratio, stressed balance sheets of the corporate sector, lower credit growth to industry sector, etc. are some of the reasons for somewhat lower growth in 2016-17. It may however be mentioned that despite the slowdown in 2016-17, as per the IMF, India was the fastest growing major economy in 2016 and second fastest growing major economy in 2017 in the world," he said.
Jaitley said the introduction of the Goods and Services Tax (GST) has provided a significant opportunity to improve growth momentum by reducing barriers to trade, business and related economic activities.