GDP growth outplays 'Demonetisation' worry, 7% growth in Q3

India saw 86 percent of its money disappear overnight, taking that into account, our economy is shockingly pliant.

India's Gross Domestic Product (GDP) developed at a rate of 7% in the October-December quarter of the fiscal year 2016-17 subsequent to calculating the note ban impact. GDP growth was 7.3 percent in the previous quarter.

Chief Economic Adviser Arvind Subramanian last month said the official GDP figures may not completely reflect the "real and significant hardships" experienced by the informal sector, in which an expected nine out of 10 Indian workers are employed.

But the pain, according to Centre, will be short-lived.

Earlier, Paris-based think tank OECD today cut India's growth forecast to 7 per cent for 2016-17 in view of demonetisation, but said the pace will accelerate to 7.3 per cent in the next fiscal.

The Organisation for Economic Cooperation and Development (OECD) had in February last year projected the country's economy to expand at 7.4 per cent in 2016-17.
"India has been a star performer in gloomy times. We do not have many cases of 7 per cent growth... It is a top reformer among all the G-20 countries," said OECD Secretary-General Angel Gurria.

The association estimates the country's economic growth to rise further to 7.7 percent in 2018-19.