GDP numbers: Experts taken by surprise

Numbers may have leapfrogged the impact of demonetisation, experts say

Gross domestic product (GDP) growth figures for the third quarter of FY17 at 7% have taken experts by surprise, who were expecting the numbers to show the impact of demonetisation. Even the Reserve Bank of India (RBI), in its recent monetary policy reviews, had cited the “likely impact of demonetisation” as one of the factors while refraining from cutting key rates. 

That apart, the International Monetary Fund (IMF) too, had recently warned India’s growth could to slow to 6.6 % in 2016-17 fiscal due to the strains that have emerged in the economy as a result of “temporary disruptions”