Several factors, including the global situation, were responsible for decline in GDP growth to 6.1 per cent in the fourth quarter of 2016-17, Finance Minister Arun Jaitley has said, dismissing suggestions that it was on account of demonetisation.
The minister further said some slowdown was visible even prior to demonetisation of ₹500 and ₹1000 currency notes announced by the government on November 8 last year. “Seven-eight per cent growth is fairly reasonable level of growth — it is very good by global standard and reasonable by Indian standard,” Jaitley said today, while addressing media on completion of three years of the Modi government.
According to the GDP data released yesterday, growth rate slipped to 6.1 per cent in the January-March quarter and 7.1 per cent during 2016-17, the lowest in the three years. Referring to the challenges, he said the major ones include resolving the issue of bad loans in the banking sector and encouraging private sector investment.
On privatisation of ailing national carrier Air India, Jaitley said Niti Aayog has already given its recommendations to the Civil Aviation Ministry to explore various options. “It is for the Civil Aviation Ministry to explore various options,” he added.