Dear Mem­ber,

Assocham Bulletin - - ASSOCHAM -

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.

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