Moneycontrol
Dec 01, 2016 09:35 AM IST | Source: CNBC-TV18

Currency overhaul could drag FY17 GDP to sub 7%: Pros

Experts believe the lower GDP numbers for September quarter may push down FY17 GDP growth. Indranil Pal, Chief Economist at IDFC Bank is expecting a sub-7 percent GDP for FY17 taking into account the impact of demonetisation.

The Q2FY17 gross domestic product (GDP) came in at 7.3 percent as against 7.1 percent in the previous quarter on back of improved performance of manufacturing, services and trade sectors.

A CNBC-TV18 poll was anticipating a 7.5 percent growth in July-September quarter. Analysts, too are slightly disappointed over the GDP growth.

The lower GDP numbers for September quarter may push down FY17 GDP growth. Indranil Pal, Chief Economist at IDFC Bank is expecting a sub-7 percent GDP for FY17 taking into account the impact of demonetisation. 

In Q3, the manufacturing is likely to be lower and impacts of demonetisation too will start reflecting, said Pronab Sen, former president of Adviser Planning Commission.

Sajjid Chinoy too believes that there are downside risks in second-half of FY17.

However, markets will not react much as other issues like demonetisation and liquidity in the system continues to be the main issues, said Manoj Rane, MD, Head – Global Markets at BNP Paribas.

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