GDP grows 6.1 per cent in March quarter; 7.1 percent in 2016/17

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The GDP numbers have been reworked on the basis of the new data series that includes many more items and are based on the price level prevailing on 2011-12.

While financial services industry growth was at a sluggish 2.2 percent versus 9 percent a year ago, construction industry contracted by 3.7 percent over 6 percent growth in the last quarter of previous fiscal.

In the fourth quarter itself, the agriculture sector GVA rose by 5.2 per cent as compared to 1.5 per cent in the same period of 2015-16.

The Q4 GDP numbers are much lower than 7.1% median forecast of economists polled by Reuters, as the government's decision to weed out Rs 15.44 lakh crore worth of high denomination notes crimped consumption and investment activity.

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Government data showed the gross domestic product grew 7.1% in the full financial year 2016-17, slower than 8% recorded in the previous year.

In the second advance estimates released in February, the CSO had estimated that growth in GVA, which is GDP minus net taxes, will slow down to 6.7 percent in 2016-17. Similarly, GVA for construction sector for the entire Financial Year 2017 was at 1.7% versus the 5% recorded in FY16, while for real estate sector GVA for the entire FY17 stood at 5.7% versus the 10.8% registered in FY16. During the third quarter ended December, India's GDP grew at 7 per cent.

Credit rating agency Moody's Investors Service earlier on Wednesday projected India's economy to accelerate to grow at 7.5% in 2017-18 and 7.7% in 2018-19 as, it said, the government has been able to limit the negative impact of last year's demonetisation on the economy. Similarly, public administration and defence industry shot up 17 percent over 6.7 percent growth a year ago.

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