Govt projects slower GDP growth in FY17
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.