Growth deceleration preceded before note ban, GST: CEA

GDP would bounce back with better credit growth, investment growth and growth in exports, Chief Economic Advisor Arvind Subramanian added.

Chief Economic Advisor Arvind Subramanian is of the view that policy experiments like demonetisation and GST rollout could have "reinforced" the growth deceleration that had already set in, a PTI report said. 
 
"I think that deceleration in growth, if you look at numbers, actually preceded before these two actions. I think that not just growth, but investment, credit, exports, industrial production, they all started decelerating sometime in the second quarter last year," Subramanian said. 
 
"So, it certainly began before. It's quite possible that these two steps (demonetisation and GST) reinforced the deceleration...”
 
However, "we will soon come out from these two policy experiments" and regain growth, he quipped. 
 
GDP would bounce back with better credit growth, investment growth and growth in exports, Subramanian added. 
 
Source: PTI

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