Mohandas Pai shares Arun Jaitley’s optimism on GDP growth despite Q1 slump1 min read . Updated: 01 Sep 2017, 02:15 PM IST
Mohandas Pai says India has seen a positive GST impact in the first month of the second quarter
Bengaluru: Former Infosys CFO T.V. Mohandas Pai on Friday shared optimism with finance minister Arun Jaitley’s remarks that the economy would grow at 7%, 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 Thursday termed the Q1 GDP growth data as a matter of concern, but expressed optimism of the economy growing at 7%.
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% to 7.5% for 2017-18.