The Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM) Dr. Bibek Debroy has said that advance GDP growth estimate of 6.5% show that the reform measures undertaken by the Government are yielding results, because 6.5% for the full year means that Q3 and Q4 numbers will be far better than first half of the year. Q3 numbers should be higher than 6.5% and Q4 numbers will be close to 7%. The growth numbers will depend on the indirect tax collections. Several indicators have already shown signs of improvement, whether it is the PMI (Purchasing Managers’ Index), the high growth in 8 core-sector industries or data on car sales. The reform measures undertaken by the Government will stimulate and pick up growth to more than 7 per cent in 2018-19.
Reacting to the estimates released today, the Chairman, EAC-PM said that the advance estimate numbers only reinforce what was already known, that several measures undertaken by the Government will place the economy firmly on an upward growth trajectory, without compromising on fiscal consolidation. He expressed confidence that the private investments and exports would also pick up soon.