The rating agency said interruptions arising out of GST roll-out are set to impact the economy for a few more quarters.
The global rating agency Crisil has scaled down its growth forecast to 7 per cent for fiscal 2018, from 7.4 per cent predicted earlier.
It said interruptions arising out of GST rollout are set to impact the economy for a few more quarters.
In the April-June period, the GDP growth slumped to 5.7 per cent – the slowest in the past three years, which tarnished India’s sheen as the fastest growing economy in the world.
“We scale down our GDP growth forecast for fiscal 2018 to 7 per cent, from 7.4 per cent earlier. We believe GST- related disruptions will limit the upsides to growth for a few more quarters because there are uncertainties around the possibility of changes to the given tax structure and as businesses adjust to this new regime,” it said.
The agency also warned that manufacturing growth could slow down to 7.6 per cent in the current fiscal year as against 7.9 per cent last fiscal year.
Source: Media reports