FY17 GDP advance estimates are purely academic at 7.1 %, demonetisation not factored

The Ministry of Statistics has released its advance GDP estimates of national income, for FY17, which has come in at 7.1 per cent as against previous year's 7.6 per cent, which was lower by 0.5 per cent points, said an official release from the government on the evening of Friday, January 6.

The figures released are advance estimates or projections, at which the economy is likely to grow during the entire fiscal FY17. The period on which the data is extrapolated is from April-November. thereby, sidestepping the all-important month of November, wherein the demonetisation effect can be seen.

However, the projections too point out the weakness in the economy in various sectors. For few of the sectors,  the data being taken is till the month of September only, therefore the data is not a reliable one, but just an estimated one.

Good rains this year have shown an uptick in farm growth at 4.1 per cent as against 1.2 in the previous year.

The government has forecasted that private final consumption expenditure (PFCE) during FY17, a measure of the household spending—will be valued at Rs 67.13 lakh crore compared to last year’s Rs 63.01 lakh crore. Consumer spending is likely to grow by 6.54 percent in FY17.

The final GDP numbers of Q3 will be out on February 20, 2017.