India's economy is at risk of slowing down in the current fiscal year, the government said in a mid-year economic survey Friday. In February, the government had forecast GDP growth of between 6.75 percent and 7.5 percent for 201718. But on Friday it warned there were several factors including the appreciation of the rupee and the introduction of a new goods and services tax that could hit growth.
Deflationary tendencies are weighing on an economy yet to gather its full growth momentum and still away from its potential, Chief Economic Adviser Arvind Subram-anian said in the survey. India's growth slowed to 6.1 percent in the fourth quarter ending March after Prime Minister Narendra Modi's shock move in November to remove nearly 90 percent of the currency from circulation to crack down on tax evaders.
-AFP, New Delhi
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