India’s GDP slows to 6.1% in fourth quarter, is 7.1% for 2016-2017
Analysts say November’s demonetisation drive could have dragged down the economy’s growth.
India’s economy grew 6.1% from in the first quarter of 2017 – January to March – government data showed on Wednesday. China’s GDP grew 6.9% during the same time period, reported The Times of India. In the previous quarter – October to December – India’s GDP was 7%.
The demonetisation drive could have dragged down the economy, reported Financial Times. Most sectors had been hit after the government demonetised Rs 500 and Rs 1,000 notes in November 2016. Economists had predicted a 7.1% GDP for the fourth quarter.
The GDP for the fiscal year 2016-’17 came in at 7.1%, as per the official estimate. The economy grew a revised 8% in 2015-’16.
“The numbers make a lot of sense from a trajectory perspective,” said Sajjid Chennoy, chief India economist for JP Morgan, was quoted as saying by Financial Times.
Earlier, global ratings agency Moody’s Investors Service had predicted India’s GDP would gradually increase to around 8% over the next three to four years.