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Note ban pulls down Q3 GDP growth in India to 7%

Author: IANS/Wednesday, March 1, 2017/Categories: Government

Note ban pulls down Q3 GDP growth in India to 7%

New Delhi, Feb 28 (IANS) Reflecting a marginal impact of the November 8 demonetisation measure, India's GDP for the third quarter ended December, estimated at Rs 30.28 lakh crore, recorded a growth of 7%, compared with 7.3% in the second quarter, official data showed.

The country had registered a Gross Domestic Product of Rs 28.31 lakh crore in the corresponding quarter of 2015-16. The second quarter was slower than the 7.6% increase posted in the corresponding quarter of 2015-16. The estimates of GDP growth for the full fiscal 2016-17 at 7.1%, marked a sharper fall from the 7.9% recorded for 2015-16. 
In terms of gross value added (GVA) - considered a better measure of economic performance, as it excludes product taxes and subsidies - of Rs 28.02 lakh crore for the quarter, the growth at 6.6% was slower compared with 7% in the previous year, mainly due to a contraction in the financial and real estate sectors.

Within the GVA, the manufacturing activity showed a sharp fall in the December quarter at 8.3%, against 12.8% in the same quarter of the previous year. While construction growth fell to 2.7%, from 3.5% the year before, financial, real estate and professional services GVA during the quarter in consideration saw a massive fall to 3.1%, from 10.4% growth seen in the third quarter of 2015-16.
However, government services, including defence, logged a robust growth of 11.9%, against 7.5% in the previous year. The primary sector, including agriculture and fisheries, bounced back impressively during the quarter in question with growth of 6%, against a decline of 2.2% in the same quarter of the previous year. 

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S Vijaykrishnan
S Vijaykrishnan


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