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