Demonetisation effect: GDP growth enters slow lane in Q4 at 6.1%

GVA growth at 2-year low of 5.6%; Farming only bright spot

India’s economic growth fell to 6.1 per cent in the fourth quarter (Q4) of 2016-17 (FY17), primarily because of demonetisation adversely affecting economic activity. This was at least a four-quarter low. 

The sectors worst affected were construction and financial services. 

Without indirect taxes, growth figures would be more dismal. Gross value added (GVA), the difference between gross domestic product (GDP) and net indirect taxes, grew by only 5.6 per cent in Q4 — the lowest in at least eight quarters, according to official figures released on Wednesday.

The effect of demonetisation was evident in the figures, with growth being pushed