India’s economic growth slowed to 6.1% in the fourth quarter ending March 2017, compared with 7.1% in the previous quarter, as the government’s note ban decision slowed activity in cash-dependent sectors. Analysts say a normal monsoon along with ongoing reforms may push up the growth rate in Asia’s third largest economy in the current year. In percentage terms, unemployment rate will remain at 3.4 per cent in 2017-18.”Widespread slowdownDuring 2016-17, the growth rate of electricity generation slowed 7.2% from 5% in 2015-16, while construction growth eased to 1.7% from 5%. The financial sector growth eased to 5.7% during 2016-17, from 10.8% in the previous year. “The nationwide rollout of GST in the second quarter of FY18 is expected to spur growth further, albeit marginally,” said Sabnavis of Care Ratings.

Source: Hindustan Times May 31, 2017 12:20 UTC