India lost its tag of being the world’s fastest growing economy as the country’s GDP or Gross Domestic Product grew by only 6.1 per cent during Q4 (January-March period), as shown by the latest government data. China’s GDP grew 6.9 per cent during the same period.
Even after considering the impact of demonetization, economists had predicted India’s fourth quarter GDP growth at 7.1 per cent. But, the actual number fell short by a huge 1 per cent. GDP growth in the previous quarter (October-December period) was 7 per cent. Overall, the GDP growth rate for 2016-17 financial year came in at 7.1 per cent whereas the projected growth rate was 8 per cent.
The numbers will surely be embarrassing for the Narendra Modi government that recently completed three years at the Centre. Modi’s demonetization drive implemented in November last year in a bid to curb black money has shown more than anticipated impact on country’s economy.
Modi’s govt. however is confident that GST, India’s biggest tax reform since independence that will come into effect from July 1 this year, will contribute 2 per cent to the GDP and the results will be seen by FY18.
