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The GVA growth at constant prices for 2016-17 is 7.1% and for 2017-18 is 6.4%. The GDP at constant prices are 7.1% in 2016-17 and
The GVA growth at constant prices for 2016-17 is 7.1% and for 2017-18 is 6.4%. The GDP at constant prices are 7.1% in 2016-17 and 6.7%. Hypothetically assuming that due to the high inflation, thus constraining consumption, government decides to restructures the indirect tax in 2018-19 freeing some disposable income among consumers which will augment demand and later supply. This is performed decrease GST taxation from 12% to 5% for most of the service sector industry in 2018-19. Secondly to provide more subsidies (food and non- food subsidies) to 65% of the population. The projected GVA growth rate in 2018-19 at constant prices is 6.8%. In this background, how will the GDP growth rate at constant prices move in this renewed situation? Will GDP at market price converge or diverge to the projected GVA growth of 2018-19? If so why
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