India loses fastest growing Economy
India‘s gross domestic product data shocked again on Wednesday as economic growth unexpectedly slumped to its lowest in more than two years in the March quarter, stripping the country of its status as the world’s fastest growing major economy.
Annual economic growth at 6.1 percent in the January-March period was even lower than the lowest analyst estimate of 6.5 percent in a Reuters poll. Overall, the median forecast of 36 analysts was for a year-on-year growth of 7.1 percent.
It was also lower than China’s growth of 6.9 percent for the first three months of 2017.The March quarter growth figure is the lowest since the December quarter in 2014, when the economy registered a 6.0 percent growth, Reuters data shows.
While economists, in general, expected a spillover effect of Prime Minister Narendra Modi’s decision last November to scrap high-value old banknotes on economic activity, the extent of the slowdown was unexpected.
A Prasanna, an economist at ICICI Securities Primary Dealership, called the data “quite shocking”.
“While we agree that a slowdown…fits in with the theme of a slowdown post-November currency swap, the extent of slowdown is puzzling,” Prasanna said.