New Delhi: India’s economy slowed down to 6.1% in the fourth quarter (January-March) of 2016-17 from 7% in the previous quarter (October-December) as the construction sector contracted as a result of demonetisation and regulatory changes while financial services sector grew at a dismal single-digit pace.
The Central Statistics Office, however, maintained its earlier full year growth estimate for 2016-17 at 7.1% against 8% in the previous financial year.
During the March quarter, construction sector shrank 3.7% against 3.4% growth in the previous quarter. The withdrawal of high-value currency notes by the government in November was expected to have hit the sector. Announcement of a real estate regulator may have also contributed to the slowdown in the construction sector.
In the fourth quarter, mining picked up to grow at 6.4%, while public expenditure grew at 17%. Agriculture output growth slowed down but stayed robust at 5.2% and financial services sector grew at a paltry 2.2%.
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