As rightly said during the beginning of the year about 2017being the 'Year of Nation's Economic Reforms', since then, the nation's economy is facing tough challenges to gain the momentum for reaching to a dreamed figure of double digit growth. Yet again, the country's Gross Domestic Product (GDP) growth slowed to a three-year low of 5.7 per cent in the April-June period of 201718 from 7.9 per cent in the same quarter a year earlier.
The growth numbers for the latest quarter are even lower then the 6.1 per cent seen in the January-March quarter of last financial year, which was considered the period, most affected by the immediate issues faced by the economy in the aftermath of the government's November 2016 decision of demonetization. A key reason for the decline in growth rate is seen as a de-stocking in June on account of uncertainty over Goods and Services Tax (GST), which was to be rolled out from July 1.
After Gross Domestic Product (GDP) data showed a three-year plunge in economic growth in the first quarter of the current financial year, Purchasing Managers' Index (PMI) data for manufacturing released on 1st Sep, 2017gave a ray of hope. Manufacturing activities bounced back to the growth path in August after the Goods and Services Tax (GST)nervousness pulled it down to contraction in July. PMI for manufacturing rose to 51.2 points in August from 47.9 points in July, 2017.
The credit growth of all scheduled commercial banks slowed down from 10.9per cent in 2015-16 to 8.1 per cent in 2016-17. The growth in aggregate deposits, on the other hand improved from 9.3 per cent in 2015-16to 15.9 per cent in 2016-17,largely on account of a massive flow of funds into the banking system after demonetization. It is reported that the banks' Non-Performing Assets (NPAs) continued to display the highest level of stressed advances.
ASSOCHAMis committed to contribute for regaining the momentum in economic growth of the country and we are sharing the industry views by way of research & study reports on the factors affecting the eco-system of the economy. We are creating a common platform for both stake holders & policy makers to interact by way of organizing events on key issues like Banking, Insolvency & Bankruptcy, Skilling, GST, Manufacturing, Infrastructure, Agriculture, Civil Aviation, Cyber Security etc.
It is indeed my pleasure to share that youth wing of ASSOCHAM has been launched in August in the name of ALFA, which stands for Acheivers & Leaders Forum of ASSOCHAM and I am sure that each member of ALFA will join & contribute to New India 2022 mission of our Hon'ble Prime Minister Shri Narendra Modi and be the Champions of Change.