Senior CPI(M) leader Sitaram Yechury on Tuesday ridiculed the government data predicting Q3 GDP growth rate at 7 per cent. Yechury, in an ostensible jibe at NDA Government, said: “If this data is to be believed, then without the demonetisation disaster, what would have been the Q3 GDP growth rate? 25%?” Earlier, Congress leader Anand Sharma had also stated that the numbers are doubtful and there is no reason for celebrations from now. Official estimates predicted that there would be no evident affect of demonetisation on India’s economy with the Central Statistics Office keeping its current financial year’s growth forecast at 7.1%. If the current estimates are to be believed, India will continue to be the fastest-growing major economy. The FY17 growth forecast still marks a slump against the 7.9% growth in the last financial year 2015-16. As per the CSO estimates, the GDP growth in the fiscal third quarter October-December at 7% on-year. However, it was slower than the previous quarter’s 7.3% on-year.
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Earlier ion the day, Paris-based internationally acclaimed think-tank OECD (Organisation for Economic Cooperation and Development), also prediceted India’s growth at 7% for 2016-17 in view of demonetisation. The think tank supported India’s move to demonetise high-value currency notes, saying that in long term its effect would include important gains going forward. OECD also predicted India’s growth rate to accelerate to 7.3% in the next fiscal. The organisation forecast the country’s economic growth to rise further to 7.7% in 2018-19. A number of think-tanks and experts have cut their projections for 2016-17 to even below 7.1% estimated by CSO in January, but most have predicted a healthy recovery in the next two financial years.