GDP growth survives demonetisation scare; registers 7 % growth during third quarter

The Central Statistical Organization’s GDP growth estimate indicate that economic growth rate has not affected much during the December ending third quarter. Gross Domestic Product recorded a growth rate of 7 % during October-December- third quarter against the predicted 7.1 % growth. The data covers toughest fifty-two days of demonetisation period from November 9 onwards.

The CSO has revised 2016-17 growth to 7.1% as the last quarter estimate is to be published in two months. Economic growth was 7.9% in 2015-16 and 7.2% during 20114-15.

Releasing the data, Chief Statistician TCA Anant said that it is difficult to assess the impact of demonetisation on GDP growth. According to him, sustained growth in sectors like agriculture, mining and manufacturing has kept the GDP to grow at the reasonable level during the third quarter.

Agriculture registered an impressive 6% growth whereas manufacturing rebounded to 8.3% growth during the quarter. Mining and quarrying also continued robust growth whereas sectors like financial services and real estate services have shown a decline in growth rate.

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