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Narendra Modi Surprises His Countrymen As Economy Grows Faster Than Expected

© REUTERS / Ajay Verma / A cashier stacks Indian currency notes inside a bank in Chandigarh, India, November 19, 2016
A cashier stacks Indian currency notes inside a bank in Chandigarh, India, November 19, 2016 - Sputnik International
Like the election results since 2014, Indian Prime Minister Narendra Modi has surprised country’s market analysts and economists who keenly waited for February 28 evening for economy’s growth rate.

New Delhi (Sputnik) — Showing its utter resilience, Indian economy has defied the anticipated impact of currency ban in third quarter of current fiscal year. Government data states 7 per cent growth rate in October-December 2016 against 6.9 per cent in same quarter of previous year. Analysts had expected a 6.4-6.7 percent growth rate due to demonetization which was announced by Narendra Modi to curb black money in the economy. Current announcement of India's growth number suggests that India would retain fastest growing economy in the world.

​"With the second advance estimate for 2016-17 at 7.1%, the data belies the widespread expectation of sub 7% growth this fiscal year. The process of remonetization is complete and we see the economy getting back on track, "said Dr Didar Singh, Secretary General of Indian Industries group FICCI.

​Analysts' predictions were based on last three months macro level data which were suggesting squeezing consumption and stagnant or negative industrial output. However, figure is still wondering whether it has captured true impact on the informal sector which contributes large part of Indian economy. Meanwhile, growth number must mask job and revenue losses in companies based in small town of India which employs as much as 45% of country's worker.

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