Demonetisation, GST effects: GDP growth seen at 4-year low of 6.5%

CSO estimates for FY18 peg GVA growth at 6.1%; hit due to poor performance of agriculture, manufacturing

Economic growth in 2017-18 is estimated to slow to a four-year low of 6.5 per cent, against 7.1 per cent in 2016-17. This will be the lowest growth rate under the BJP-led National Democratic Alliance, largely because of the adverse impact of the goods and services tax (GST) and the lingering effects of demonetisation.

The first Advance Estimate for India’s GDP growth released by the Central Statistics Office (CSO) on Friday showed that the pace of agricultural expansion is expected to fall by more than half (from 4.9 per cent in the previous year to 2.1 per cent in FY18)