The effect of the filing of nomination on November 8 last year has been directly affected by the government’s expenditure. For this reason, the growth of the first quarter of the year 2017 (January-March) has slowed down. Fitch Ratings warned that the impact of the reduction in existing investment will be seen on the growth figures.
Fitch said in the global economic scenario that significant gains in Indian GDP in January-March of the year 2017 have been observed and it is at 6.1 percent level. On the other hand, the figure was seven percent in the October-December quarter. For information, please tell that the lowest increase in the fourth quarter of FY13 is the lowest growth.
According to this report, weakness in domestic demand has been observed. The reason for this was to withdraw 86 percent of the currency from the government in November last year, whose direct impact was seen on the expenditure.
According to Fitch, the impact of the ban on the economy is very disturbing. The decision of the bank reflects the challenges of spending on the large unorganized part of the economy. The growth rate of consumption also declined to 7.3percentt in the fourth quarter of 2016-17, which was 11.3 per cent in the same period last fiscal year 2015-16.