Economy will grow 7% despite lower GDP growth in Q1, says T V Mohandas Pai

India has seen a positive GST impact in the first month of the second quarter, said T V Mohandas Pai

Former Infosys CFO T V Mohandas Pai on Wednesday shared optimism with Finance Minister Arun Jaitley's remarks that the economy would grow at seven per cent, despite lower GDP growth in Q1, 'due to pre-GST destocking of goods.'

"I share the optimism (of Jaitley's remarks that the Indian economy will grow seven per cent, inspite of lower GDP growth in Q1. Q1 was impacted by GST destocking," he told PTI.

Pai, who is now Managing Director of Aarin Capital, said India has seen a positive GST impact in the first month of the second quarter.

He also said private investment was still weak due to excess capacity in many areas, large NPAs among other things, but that increased investment in roads and railways is showing results.

Pai said India's growth in future would benefit from creation of one single tax, reduced supply chain costs, increased competition and low inflation and one single national market for the first time.

Jaitley had yesterday termed the Q1 GDP growth data as a matter of concern, but expressed optimism of the economy growing at seven per cent.

He had also said that improvement in the global economy and a good monsoon would aid India GDP growth in the coming quarters, which ought to be better if the country was to achieve the annual growth target.

The Economic Survey had projected a growth of 6.75 per cent to 7.5 per cent for 2017-18.