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Economic downturn has bottomed out, expect growth in 2 quarters: NITI Aayog

Vice chairman Rajiv Kumar said that the formalisation of economy would obviously be at some cost

Press Trust of India  |  New Delhi 

Rajiv Kumar at a press conference after assuming office as the NITI Aayog vice-chairman in New Delhi.  (Photo: Sanjay K Sharma)
File photo of Rajiv Kumar at a press conference after assuming office as the NITI Aayog vice-chairman in New Delhi. (Photo: Sanjay K Sharma)

Niti Aayog Vice Chairman Rajiv Kumar on Wednesday said the economic downturn which began in the last two years of II regime has bottomed out and the growth will improve in the next two-quarters.

Kumar also admitted that there have been problems on account of and Goods and Services (GST) implementation but now people have adopted to the new regime.

"...this downward cycle of began in the last two years of the II and that downward cycle in my view has bottomed out.

"We will be achieving higher growth in the next two quarters, and I think 2018-19 will be much better than the current year (in terms of economic growth)," he said at the AIMA diamond jubilee convention here.

India's has slipped to a three-year low of 5.7 per cent in the first quarter of the current fiscal.

The Niti Aayog vice chairman also pointed out that in and services PMI, the lowest point reached in July and therefrom it has started rising.

Kumar noted that historically countries which have adopted have all seen some decline in the growth rate because the system struggles to come to new norm.

"This formalisation of is going to take some cost," he observed.

Applauding government's performance, Kumar said has attracted foreign direct investment (FDI) worth $250 billion in the last three years.

He also said Indian industry must serve national interest and not only interest of some segments of the society.

Kumar also emphasised on the need of creating trust between and industry.

Noting that Indian industry must embrace the global cutting-edge technology, the Niti Aayog vice chairman said one should think at global level and not just for domestic consumers.

He also suggested that Niti Aayog work more with states.

Earlier speaking at the same event, Niti Aayog CEO Amitabh Kant said cannot grow without parity as currently only 24 per cent of comes from

Kant also said it is important to have consistency and predictability in

First Published: Thu, September 28 2017. 00:39 IST