India sees slowing economy for the current fiscal year

Reuters NEW DELHI (Reuters) — India on Friday predicted robust economic growth in the fiscal year that ends in March, but the forecast does not fully account for disruption caused by Prime Minister Narendra Modi’s decision to abolish high-value old currency bills.

Gross domestic product is estimated to achieve annual growth of 7.1 percent in the fiscal year 2016/17, slower than a provisional figure of 7.6 percent a year earlier.

Most private economists have pared India’s growth forecast to 6.3 percent to 6.4 percent for the 2016/17 fiscal year, citing the impact of the demonetisation, which they reckon would linger for one more year. Friday’s GDP estimate is a vital input for Finance Minister Arun Jaitley’s budget on Feb. 1. Speech

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