The Central Statistics Organisation has pegged its advance growth estimate for the current fiscal at 7.1%
As per the Central Statistics Organisation (CSO), India's Gross Domestic Product (GDP) grew at a healthy rate of 7% in the October-December quarter despite Prime Minister Narendra Modi's demonetization move.
CSO pegged its advance GDP growth estimate for the current fiscal at 7.1%, the same as it projected earlier.
According to CSO, GDP had grown at 7.3% in the July-September quarter this fiscal.
On November 8, Prime Minister Modi had announced the demonetization of Rs 500 and Rs 1000 notes as legal tender in order to curb black money and fight terrorism. It had set December 31 as the deadline to exchange and deposit the defunct notes which saw people scurrying outside banks and ATMs and also hit business operations across the nation.
Commenting on the impact, Economic Affairs Secretary Shaktikanta Das stated that the government succeeded in maintaining the economy's growth at 7% against the negative projection of many.
Earlier this month, the Reserve Bank of India (RBI) had lowered GDP growth forecast for this fiscal to 6.9%, but at the same time projected a rebound in the next fiscal at 7.4%.
The International Monetary Fund (IMF) too in its annual report on India had forecast that the GDP growth will slow to 6.6% in 2016-17 due to "temporary disruptions" caused by demonetization. It, however, had said demonetization will have only short-term impact on the economy, which will bounce back to its expected growth of more than 8% in the next few years.
In a statement, the CSO said Real GDP or Gross Domestic Product (GDP) at constant (2011-12) prices in 2016-17 is likely to attain a level of Rs 121.65 lakh crore, as against the first revised estimate of GDP for 2015-16 of Rs 113.58 lakh crore, released in January 2017.
"The growth in GDP during 2016-17 is estimated at 7.1% as compared to the growth rate of 7.9% in 2015-16," it said. Real GVA (Gross Value Added) is anticipated to increase from Rs 104.70 lakh crore in 2015-16 to Rs 111.68 lakh crore in 2016-17. The 'agriculture, forestry and fishing' sector is likely to show 4.4% growth in its GVA during 2016-17, as against the previous year's growth of 0.8%. The second advance estimates of National Income, 2016-17, revealed that the growth in the GVA from 'manufacturing' sector is estimated to be 7.7% compared to 10.6% in 2015-16.
The per capita net national income (current price) during 2016-17 is estimated to be Rs 1,03,818 showing a rise of 10.2% compared to Rs 94,178 during 2015-16 with the growth rate of 8.9%. Private Final Consumption Expenditure (PFCE) at current prices is estimated at Rs 88.40 lakh crore in 2016-17 as against Rs 79.00 lakh crore in 2015-16. At constant (2011-12) prices, the PFCE is estimated at Rs 68.26 lakh crore in 2016-17 as against Rs 63.66 lakh crore in 2015-16.
In terms of GDP, the rates of PFCE at current and constant prices during 2016-17 are estimated at 58% and 56.1%, respectively, as against the corresponding rates of 57.8% and 56.1%, respectively in 2015-16.
The data further revealed that Gross Fixed Capital Formation (GFCF) at current prices is estimated at Rs 40.97 lakh crore in 2016-17 as against Rs 39.89 lakh crore in last fiscl. At constant prices, the GFCF is estimated at Rs 35.55 lakh crore in 2016-17 as against Rs 35.35 lakh crore year-on-year. "In terms of GDP, the rates of GFCF at current and constant (2011-12) prices during 2016-17 are estimated at 26.9% and 29.2%, respectively, as against the corresponding rates of 29.2% and 31.1%, respectively in 2015-16," the CSO said. The GFCF is expected to register growth rate of 2.7% at current prices and 0.6% at constant prices.
(With PTI inputs)
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