Arun Jaitley said India's GDP growth rate was hurt by both domestic and international factors.
India growing at 7-8 per cent is "fairly reasonable" in the current global context, Finance Minister Arun Jaitley on Thursday said while maintaining that the decline in fourth quarter GDP print cannot be attributed to demonetisation alone.
India lost the tag of the fastest growing economy to China in the March quarter with a GDP growth of 6.1 per cent, which pulled down the 2016-17 expansion to 7.1 per cent. Mr Jaitley said the slowdown in the fourth quarter was due to both domestic and global factors.
"There are several factors which can contribute to GDP in a particular quarter. There was some slowdown visible given the global and domestic situation even prior to demonetisation in the last year," Mr Jaitley said while addressing media on completion of three years of the Modi government.
"There was impact of global factors. There could be some impact in one quarter or two quarters of one particular factor (demonetisation)...
"...if you look at the growth of some sectors, the 9-10 per cent growth that was normally in services, especially in the financial sector, has come down. The ability of banks itself was in question. So these are cumulative factors which played," he said.
He added that a GDP growth rate of 7-8 per cent is reasonable by both global and Indian standards. "I do believe that in the current global situation, a 7-8 per cent growth, which is at the moment Indian normal, is fairly reasonable.
"It is fairly reasonable level of growth by our own standard and very good by global standard. I see no reason that there would be adverse impact of GST on GDP. The GST by itself should normally add to the growth," he said.