India hopes to become the leader in GDP growth next year

© RIA Novosti / Insaf BusinessLog over the Avenue Raj Pathom in new Delhi, India. Archive photoIndia hopes to become the leader in GDP growth next year© RIA Novosti / Insaf of Basirov

New Delhi expects the GDP growth rates of India in the next financial year (1 April 2018 — 31 March 2019) will increase to 7-7,5%, which will make Indian economy the fastest growing in the world.

This is stated in the annual report on the economic situation in the country, which was presented on Monday to Parliament, the Finance Minister of India Arun Jaitly. The document is a report on the current financial situation in the country, it is served on the eve of the announcement of the new budget, which traditionally occurs on February 1.

In the report, excerpts of which were published on the government website, said that «export growth and investment will boost the economy of India in the next (financial) year after a sharp drop in growth in the first half of the year.»

The document notes that the slowdown was triggered by «a sudden withdrawal in 2016, the Indian currency from circulation, as well as the chaotic implementation of the initiative for the introduction of the new uniform tax on goods and services».

India since November last year had two key economic reforms — temporary withdrawal from circulation of large notes with the aim to overcome the «shadow economy» and to increase transparency of financial transactions, and also introduced a unified tax on goods and services, which replaced a complex system of differentiated taxation in different States.

These reforms led to the slowdown of the economy since the end of last year, the growth rate is lower than in the previous period, when GDP grew at a rate of around 7%. So, in January-March the growth was 6.1% in April-June and is slowed down to 5.7%.