NEW DELHI (Sputnik) — The data was released by Chief Statistician of India TCA Anant. The fall or slowdown will be interpreted in different ways, with the Opposition parties finding fault with the government decision to demonetize 86% of currencies in November last year.
"It is not so straightforward to link third and fourth quarter growth figures to the demonetization exercise. There is a systematic trend of hardening of commodity prices which have been visible throughout 2016-17. This hardening of prices plays role in GDP compilation. There is certain softening in industrial growth from the first quarter of 2016-17. There are other dynamics which we will need to keep in mind. But, yes every policy decision impacts numbers, so demonetization is certainly one of the decisions which impacted GDP," TCA Anant assessed the possible reasons behind the fall in economic growth.
In the wake of demonetization, the country's central bank, the Reserve Bank of India, the World Bank and others estimated moderately downward movements in economic activity, the slow pace of fixed capital formation and decline in manufacturing activity.
"Significant risks to India's favorable growth outlook remain such as continued uncertainties in the global environment, including rising global protectionism and a renewed slowdown in the Chinese economy, could further delay a meaningful recovery of external demand," Sandeep Jajodia, the president of industry association Assocham, said.
