<b>Statsguru:</b> Looking back - 2016 in review

Despite the weakness in the economy, foreign investors continued to pour in billions

The year began on a strong note. Gross Domestic Product (GDP) grew by 7.9% in the January to March quarter. 

Expectations of growth maintaining momentum gained traction. An increase in public sector investment was supposed to crowd in private investment, kick-starting the investment cycle. A good monsoon and proceeds from the 7th Pay commission would spur consumption in the second half of the year, or so it was hoped. 

But, as Chart 1 shows, growth sputtered to 7.1% in the April-June quarter, thereafter growing by 7.3%, way short of the Reserve Bank of India (RBI)’s expectations. Investment activity continued to show