Govt projects slower GDP growth in FY17



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Govt projects slower GDP growth in FY17


Date: 7-January-2017

The Indian government projected slower economic growth for the year through March but didn’t take into account the impact of the banknote ban in November that has caused a cash crunch and hurt business activity.Gross domestic product is likely to expand 7.1% in 2016-17 from 7.6% in 2015-16, the Central Statistics Office said in its first advance estimates of economic expansion for the current financial year.The statistics office said also that growth in gross value added (GVA), a key input of GDP that the Reserve Bank of India tracks, is likely to drop to 7% from 7.2%, it said.Farm growth is projected to quicken to 4.1% from 1.2%. Growth in manufacturing is likely to fall to 7.4% from 9.3%. Expansion in electricity and other utilities is likely to be 6.5% from 6.6%, while mining output could shrink 1.8% compared with 7.4% growth in 2015-16. Growth in the construction, trade, hotels, transport, financial sectors and real estate is also likely to be slower this year.

 
 
 
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