ECON­OMY SET TO GROW AT 7.1% IN 2016-17, LOW­EST IN THREE YEARS

Hindustan Times ST (Mumbai) - Live - - FRONT PAGE - Suchetana Ray and Sunny Sen

NEW DELHI: The gov­ern­ment on Fri­day pre­dicted that the In­dian econ­omy will grow at 7.1% in 2016-17, lower than 7.6% in the pre­vi­ous fis­cal. The slump is mainly ow­ing to a slow­down in man­u­fac­tur­ing, min­ing and con­struc­tion sec­tors.

What is wor­ry­ing is that at 7.1%, In­dia’s growth is low­est in three years, and also the fore­cast does not fully ac­count for dis­rup­tion caused by PM Naren­dra Modi’s de­mon­eti­sa­tion drive.

Eco­nomic af­fairs sec­re­tary Shak­tikanta Das, how­ever, re­futed any such ap­pre­hen­sions and said: “Data on de­mon­eti­sa­tion are purely based on im­pres­sions and are anec­do­tal. In fact, most states show a growth in VAT col­lec­tions in Novem­ber 2016.”

Agri­cul­ture, forestry and fish­ing are ex­pected to grow 4.1% in 2016-17, com­pared to 1.2% last fis­cal. While man­u­fac­tur­ing is ex­pected to slow to 7.4% and con­struc­tion ac­tiv­i­ties to 2.9%, min­ing and quar­ry­ing are also likely to fall 1.8%, af­ter record­ing a growth of 7.4% in 2015-16.

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