Q4 of FY17 saw the country’s Gross Domestic Product (GDP) slowdown to 6.1 percent compared to 7 percent in Q3 FY17, while GDP for FY 2016-17 came at 7.1 percent compared to 8.0 percent in the previous year. The demonitisation drive seems to have had an impact on the economy's growth.
Chief Statistician of India TCA Anant, said that there are many factors that influence GDP growth and contrary to what many believe demonetisation cannot solely be tied to this figure and was hopeful that the economy is still dynamic.
Quarterly Estimate of GVA (at 2011-12 prices)
|
Industry |
2015-16 |
2016-17 |
||||||
|
|
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
|
Agriculture,forestry & Fishing |
2.1 |
2.3 |
-2.1 |
1.5 |
2.5 |
4.1 |
6.9 |
5.2 |
|
Mining & Quarrying |
8.3 |
12.2 |
11.7 |
10.5 |
-0.9 |
-1.3 |
1.9 |
6.4 |
|
Manufacturing |
8.2 |
9.3 |
13.2 |
12.7 |
10.7 |
7.7 |
8.2 |
5.3 |
|
Electricity, gas, water supply & other utility services |
2.8 |
5.7 |
4 |
7.6 |
10.3 |
5.1 |
7.4 |
6.1 |
|
Construction |
6.2 |
1.6 |
6 |
6 |
3.1 |
4.3 |
3.4 |
-3.7 |
|
Trade, Hotels, Transport & communication and services related to broadcasting |
10.3 |
8.3 |
10.1 |
12.8 |
8.9 |
7.7 |
8.3 |
6.5 |
|
Financial, real estate & professional services |
10.1 |
13 |
10.5 |
9 |
9.4 |
7 |
3.3 |
2.2 |
|
Public adminsitration, defence and other services |
6.2 |
7.2 |
7.5 |
6.7 |
8.6 |
9.5 |
10.3 |
17 |
Gross Value Addition (GVA) for FY 2016-17 came at 6.6 percent with construction at 1.7 percent, mining & quarrying 1.8 percent, manufacturing 7.9 percent and financial, real estate & professional services 5.7 percent being majorly hit. The only respite came through government expenditure on public administration, defence and other services coming at 11.3 percent.
With major disappointment being seen through the numbers put out by secondary industries, it seems the Reserve Bank of India and the government will need to push for more growth friendly policies and environment.