India`s FY17 GDP growth pegged at 3-year low of 7.1% vs 7.6% in FY16; demonetisation impact not factored in

New Delhi: The economic growth is expected to be 7.1 percent in FY 2016-17 as compared to the growth rate of 7.6 percent in FY 2015-16.

According to the first advance estimates, released by the Central Statistics Office (CSO) Friday, the ‘agriculture, forestry and fishing’ sector is likely to show a growth of  4.1 percent during 2016-17, as against the previous year’s growth rate of 1.2 percent.

For 2016-17, manufacturing sector is estimated to grow by 7.4 percent as compared to growth of 9.3 percent in 2015-16.

The growth in the ‘agriculture, forestry and fishing’, ‘mining and quarrying’, ‘electricity, gas, water supply and other utility services’, ‘construction’ and ‘Trade, hotels, transport, communication and services related to broadcasting’ is estimated to be 4.1 percent, (-)1.8 percent, 6.5 percent, 2.9 percent and 6.0 percent respectively.

The growth rate in per capita income is estimated at 5.6 percent during 2016-17, as against 6.2 percent in the previous year.

Going by the parameters used for the advance estimate, the impact of demonetisation has not been considered in the forecast.

If the economy grows at 7.1 percent as forecasted, it will be the slowest pace of expansion in 3 years. In 2014-15, the economy had expanded at 7.2 percent.