Economic Affairs Secretary S.C. Garg today said the temporary disruptive effect of the Goods and Services Tax (GST) is over as the manufacturing sector recorded positive growth of 3.1% in August.
Commenting on the twin data on industrial output and price situation, he said that the benign and moderate inflation has become the order of the day.
“Manufacturing grew by 3.1% in August after two months of negative growth of 0.5% and 0.3%. Temporary disruptive effect of GST is over,” he said in a tweet.
Overall, industrial production grew at a nine-month high of 4.3% in August, mainly on account of robust performance of mining and power sectors coupled with higher capital goods output.
India’s economic growth slipped to a three-year low of 5.7% in the first quarter of the current fiscal. Despite teh slowdown, the Reserve Bank of India at its policy review meeting earlier this month kept the key interest rate unchanged at 6%, citing upward an trend in inflation.
“Benign and moderate inflation is the order of the day with consumer inflation of 3.3% in September. Food inflation remained 1.8% only,” he said in another tweet.
