Views on GDP numbers - Upasna Bhardwaj, Sr. Economist at Kotak Mahindra Bank

"The sharp slowdown in Q4FY16-17 continues to reiterate the fact that demonetization has taken a toll on FY17 growth, and this conforms with the already tepid high frequency data. While the slowdown in the economy was already visible before demonetization, it became more pronounced in the second half of the financial year. Going ahead, we expect the consumption led story to continue and it will remain the key catalyst of growth aided by easing financial conditions, higher rural wages and boost from impending salary hikes for state, with exports providing further support. However, lower budgeted growth in the general government spending, a key contributor to growth, compared to FY17 along with complete absence of private investment is expected to continue to drag on overall growth. Slow growth along with a sharply lower than expected inflation trajectory is likely to keep RBI on the softer side of the fence".

Source : Equity Bulls

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