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.
People projected negative impact of #DeMonetisation on GDP, but its not so we maintained growth at 7%: Eco Affairs Secy Shaktikanta Das pic.twitter.com/b2FuwhGkhx— ANI (@ANI_news) February 28, 2017
"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.
#surprise— Dinesh Narayanan (@IamDineshN) February 28, 2017
Despite #DeMonetisation India's GDP grew 7% during Dec'16 quarter.
Skeptics expected 6.4%
I'm still wondering at this!
Hey, good news, demonetisation was great for consumption!— Mihir Sharma (@mihirssharma) February 28, 2017
If we continue at this rate, people will trust out numbers as much as China's. https://t.co/oz1qluVAfL
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.