Fear of uncertainty over the implementation of the Goods and Services Tax (GST) has cast its shadow on manufacturing activities as growth in the sector fell to a four-month low in June, showed the widely-tracked Nikkei purchasing managers' index (PMI). Water shortages in some parts of the country also led to the slowdown in growth.

However, the author of the report, Pollyanna De Lima, did not expect GST to derail consumer demand. Coupled with demonetisation's impact largely being over, Lima projected India's economy to grow 7.3 per cent in 2017-18, a bit higher than 7.1 ...