Thursday, 31 August 2017

India's economy growth rate slows as new sales tax confuses firms

India's economy grew at its slowest pace for three years in the April-to-June quarter, official figures show.

The economy grew by 5.7% compared with a year earlier, down from a rate of 6.1% in the previous quarter.

Many analysts had expected the economy to bounce back after the government's crackdown on black market cash last year.

However, confusion among some firms over a new tax on goods and services was blamed for holding back growth.

Some retailers said ambiguous rules over the new sales tax, which began on 1 July, left them unsure over how to price their products.
But manufacturing saw the sharpest slowdown in growth, expanding at just 1.2% compared to 10.7% a year earlier.

Growth in the financial, insurance, real estate and professional services sectors also slowed from 9.4% to 6.4%.

BBC       News.