New Delhi: India's economy expanded by 7 percent in the third quarter of this financial year, belying fears that note ban would have severely impacted economic activity.
The Central Statistics Office (CSO) has retained the growth projection for the current fiscal at 7.1 percent, as projected in the first advance estimate in January.
Meanwhile, the CSO has also marginally revised upwards the Gross Domestic Product (GDP) estimates for the first and the second quarters to 7.2 percent and 7.4 percent.
It was feared that demonetization effected in the middle of the third quarter (November 9, 2016) would have adverse bearing on various segments of the economy.
The Reserve Bank of India (RBI) and other agencies like International Monetary Fund and Organisation for Economic Co-operation and Development (OECD) had lowered GDP projections arguing that the note ban would have short-term impact on the Indian economy.
In a statement, the CSO said Real GDP or GDP at constant (2011-12) prices in 2016-17 is likely to attain a level of Rs 121.65 lakh crore, as against the first revised estimate of GDP for 2015-16 of Rs 113.58 lakh crore, released last month.
"The growth in GDP during 2016-17 is estimated at 7.1 percent as compared to the growth rate of 7.9 percent in 2015-16," it said.
Real GVA (Gross Value Added) is anticipated to increase from Rs 104.70 lakh crore in 2015-16 to Rs 111.68 lakh crore in 2016-17.
"Anticipated growth of real GVA at basic prices in 2016-17 is 6.7 percent against 7.8 per cent in 2015-16," the release said.
The 'agriculture, forestry and fishing' sector is likely to show 4.4 percent growth in its GVA during 2016-17, as against the previous year's growth of 0.8 percent.
The second advance estimates of National Income, 2016-17, revealed that the growth in the GVA from 'manufacturing' sector is estimated to be 7.7 percent compared to 10.6 percent in 2015-16.
Commenting on the data, Economic Affairs Secretary Shaktikanta Das said this year growth figures are on a high base of last fiscal and numbers "do not show much negative impact of demonetization".
The per capita net national income (current price) during 2016-17 is estimated to be Rs 1,03,818 showing a rise of 10.2 per cent compared to Rs 94,178 during 2015-16 with the growth rate of 8.9 percent.
Private Final Consumption Expenditure (PFCE) at current prices is estimated at Rs 88.40 lakh crore in 2016-17 as against Rs 79 lakh crore in 2015-16. At constant (2011-12) prices, the PFCE is estimated at Rs 68.26 lakh crore in 2016-17 as against Rs 63.66 lakh crore in 2015-16.
In terms of GDP, the rates of PFCE at current and constant prices during 2016-17 are estimated at 58 percent and 56.1 percent, respectively, as against the corresponding rates of 57.8 percent and 56.1 percent, respectively in 2015-16.
The data further revealed that Gross Fixed Capital Formation (GFCF) at current prices is estimated at Rs 40.97 lakh crore in 2016-17 as against Rs 39.89 lakh crore in last fiscal.
At constant prices, the GFCF is estimated at Rs 35.55 lakh crore in 2016-17 as against Rs 35.35 lakh crore year-on-year.
"In terms of GDP, the rates of GFCF at current and constant (2011-12) prices during 2016-17 are estimated at 26.9 percent and 29.2 percent, respectively, as against the corresponding rates of 29.2 percent and 31.1 percent, respectively in 2015-16," the CSO said.
The GFCF is expected to register growth rate of 2.7 per cent at current prices and 0.6 percent at constant prices.