GDP growth slows down to 7.1 per cent after demonetisation; India loses fastest growing economy tag to China

The Gross Domestic Product (GDP) was 6.1 per in the January-March quarter, the immediate three months after the demonetisation was affected on November 9, 2016.

By: Express Web Desk | New Delhi | Updated: May 31, 2017 9:35 pm
GDP, GDP data, GDP growth, India GDP, GDP india, GDP numbers, GDP news, The GDP growth estimates for the next financial year remained unchanged at 7.1 per cent.

Demonetisation had negative impact on India’s growth which slowed slowed down to 7.1 per cent in 2016-17, despite a very good showing by the agricultural sector. India also lost the tag of the fastest growing economy to China in the March quarter with a GDP growth of 6.1 per cent. The GDP, as per the new series with base year of 2011-12, had expanded by 8 per cent in 2015-16. It was 7.9 per cent as based on the old series.

According to the data released by the Central Statistics Office (CSO), the Gross Value Added (GVA) slipped sharply to 6.6 per cent in the last financial year ended March 31, from 7.9 per cent growth in 2015-16. The demonetisation seems to have impacted the GVA in the third as well as fourth quarter of 2016-17 which slipped to 6.7 per cent and 5.6 per cent respectively, from 7.3 per cent and 8.7 per cent.

Almost all sectors, with the exception of agriculture, showed deceleration in the aftermath of demonetisation. While the manufacturing sector output in the fourth quarter slowed to 5.3 per cent versus 12.7 per cent in the same period of last year, the construction sector slipped into the negative territory.

Thanks to good monsoon, the agricultural sector posted a huge jump in growth as it expanded by 4.9 per cent during 2016-17 compared to dismal growth of 0.7 per cent in the previous year.

In the fourth quarter itself, the agriculture sector GVA rose by 5.2 per cent as compared to 1.5 per cent in the same period of 2015-16. The data further said the per capita income during 2016-17 is estimated to have attained a level of Rs 1,03,219 as compared to the estimates for the year 2015-16 of Rs 94,130 showing a rise of 9.7 per cent.

Meanwhile, Chief Economic Advisor Arvind Subramanian told news agency ANI today: “Broadly the data is consistent with what we said in the monetary survey.”

(With inputs from PTI)

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  1. F
    Firoz Khan
    Jun 1, 2017 at 12:53 pm
    Modi is a feku and brainwashed RSS agent. read below what X PM Singh said: naatkhan /news/6/Annual-growth-of-India-slows-after-controversial-note-ban
    1. A
      avona maiti
      Jun 1, 2017 at 7:45 am
      Politics for dummies. We are going to go on growing by one or two percent every year, never mind joblessness, rising prices, social unrest. True power and knowledge lies in the bowels of a gobar gas plant
      1. h
        hitek. valves
        Jun 1, 2017 at 6:17 am
        Indian economic is fai badly, loosing jobs, bad business atmosphere due to demonstration due Self centric & arrogant anti middle cl Modi
        1. K
          Jun 1, 2017 at 4:28 am
          ABKI BAAR ROGI SARKAR. This is what has happened for Voting BJP.
          1. O
            Jun 1, 2017 at 4:51 am
            Kejariwal's student spotted
          2. R
            Jun 1, 2017 at 4:24 am
            Many Generations may regret why BJP was Voted to Power. The March of Country towards becoming Economic Super Power have been stopped by FEKU due to his arrogance and misrule.
            1. O
              Jun 1, 2017 at 4:53 am
              Jahadi - church anti Hindu alliance spotted
              1. P
                Jun 1, 2017 at 5:34 am
                Wish bhakts like you knew something about GDP
            2. H
              Jun 1, 2017 at 4:17 am
              What has DHONGI given to the country. Spreading Hate and Dividing People on Religion and Caste. Lynching Innocents using Safron Mobs. Attacking Dalits and Weak using Hindu Yuva Vahini. Attacking People Privacy and entering their houses by Force with Criminal Bajrang dal disguised as Anti-Romeo. Taking away livelihood of farmers and poor. Kil many dozens with Note Ban and turning Middle Cl into poor. Protecting those with Black Money in Swiss Bank and Abroad. Creating atmosphere of Hate in the country. Stea Election with EVM Tampering. Misusing almost all Government Agencies to Demonize Opposition. Sky Rocketing Crimes, Rapes, Robbery, Loot, Molestation and Police Brutality.
              1. R
                Jun 1, 2017 at 4:09 am
                It is not Slowdown but SLOW POISON of Indian Economy by Safroni Pendus/Sadhus good for nothing. For Power Addicted Modi no matter Country is completely destro Sadhus and Chaddi gang must enjoy power and his JUMLAS must continue with the destruction and down fall of country.
                1. M
                  Jun 1, 2017 at 4:09 am
                  Surgical strike on itself...All the big boast and a thud...Feku governance at its best...
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