Finance minister Arun Jaitley had earlier asserted with confidence that India would achieve a growth rate of 7.5 per cent this year. Subramanian told reporters that the farm loan waivers, leading to the slashing of expenditure by states, "represent less demand and less growth". Bhanumurthy of the National Institute of Public Finance and Policy said: "I do not agree with the survey's view that farm loan waiver is disinflationary. The survey highlighted the economic impact of the bad loan crisis that has rocked the Indian economy. It has already lost its bragging rights to China whose growth rate has once again outpaced India's.

Source: The Telegraph August 11, 2017 21:11 UTC