Demonetisation impact: GDP growth slows to 6.1% in Q4, 7.1% in FY17

GDP grew a revised 8% in FY16; FY17 GVA at 6.6% vs 7.9% in FY16

Revision of the base year for index of industrial production (IIP) and the wholesale price index (WPI) failed to boost India's economic growth, which slowed down to a three-year low of 7.1%. Demonetisation move also had an impact on FY17 numbers. The growth was revised upwards to 8% for the previous year from 7.9% due to revision in the IIP and WPI series. 

If indirect taxes are taken out, the resultant gross value added (GVA) growth was just 6.6%, revised down from 6.7% in advance estimates as against 7.9% in FY16.

The impact of demonetisation was more discernible in the