India's Q4 economic growth seen slowing to near 3-year low: Reuters poll

India’s Q4 economic growth seen slowing to near 3-year low: Reuters poll

India News

India’s economy is expected to have slowed sharply to a near three-year low in the final three months of 2016, as demand wilted following Prime Minister Narendra Modi’s surprise decision to ban high-value currency notes, a Reuters poll of economists showed. Modi’s announcement on November 8 ordering the removal of 500-rupee and 1,000-rupee notes took out around 86 percent of the currency in circulation, putting activity on the skids in a predominantly cash-reliant economy. The poll of 30 economists taken over the past week showed India’s gross domestic product growth slowed to 6.4 percent annually in the October-December quarter. Several economists were uncertain about the full impact of the currency ban. In July-September, India’s economic growth had accelerated to 7.3 percent from a year ago, making it the fastest-growing major economy in the world. That title will be lost to China if the Reuters consensus is met, putting the country’s growth at its lowest since March 2014, with China’s economy having grown 6.8 percent during the same period.