India’s GDP growth in 2016-17 came in at 7.1%, in line with the official estimate.
Gross domestic product (GDP) growth slowed to 6.1% in the fiscal fourth quarter from 7% in the third, according to data released by the government on Wednesday.
Chief economic adviser Arvind Subramanian said the fourth quarter numbers had been expected to reflect the biggest impact of demonetisation.
Agriculture output growth slowed but stayed robust at 5.2% and financial services grew by just 2.2%.
India’s per capita income in real terms in 2016-17 also slowed to a growth pace of 5.7% to Rs82,296 ($1,276) against 6.8% growth last year.
India’s GDP growth in 2016-17 came in at 7.1%, in line with the official estimate
referring to “The 7.1 per cent growth is robust,” he said.
For the fourth quarter, India lost the tag of the world’s fastest-growing economy as China’s GDP grew 6.9 per cent in that quarter.
In Q4, gross fixed capital formation, dipped 2.1 per cent although for the fiscal it grew 2.4 per cent.
Moody’s said the note ban would have limited impact, and the economy will grow 7.5 per cent in fiscal 2017 and 7.7 per cent in fiscal 2018.
For 2016-17, growth in GVA in all sectors barring construction and financial, real estate and professional services were revised upwards as compared to the advance estimates, while for these two sectors, it was scaled down.
referring to “The lower-than-anticipated fourth quarter GDP number reflects the lingering impact of demonetisation,” Shubhada Rao, chief economist at Yes Bank, told Reuters.
India’s GDP grew at 7.1% in 2016-17, the country’s Central Statistics Office (CSO) said on May 31.
The GST implementation, which provides for one umbrella tax in place of various state and central taxes, could boost GDP growth by some 4.2%, researchers at the US Federal Reserve have estimated.
Critics had slammed the government’s estimates last quarter, saying they did not capture the impact of the currency ban accurately.
The numbers show that the key sectors that propel growth such as cement, steel, and infrastructure are still suffering.
collected by :Mathio Rix