New Delhi: Government data has sought to contradict the prevalent perception that the decision to scrap high-value bank notes hit the economy hard by showing that the highest growth rate during the Narendra Modi government was registered at 8.2 percent in 2016-17. The Central Statistics Office (CSO) had revised the growth figures for 2016-17 — the financial year which saw the ruling administration abolish higher denomination currency notes of 500 and 1,000 from circulation to crack down on black money — from the earlier figures of 7.1 percent.
The Gross Domestic Product (GDP) growth was 7.4 percent in 2014-15 and 8 percent in the following financial year, according to the CSO, which estimated the country's economy to expand at 8.2 percent in the fiscal ending March 2019.
"Real GDP or GDP at constant (2011-12) prices for 2017-18 and 2016-17 stands at Rs 131.80 lakh crore and Rs 122.98 lakh crore, respectively, showing a growth of 7.2 percent during 2017-18 and 8.2 percent during 2016-17," the CSO said in its First Advance Estimates of National Income at Constant (2011-12) for 2017-18.
Prime Minister Modi, in a televised address to India on November 8, 2016, made the announcement of demonetising the old high-value currency value notes. Following the announcement, many economists and critics said the expansion would substantially decrease in the quarter.
The CSO announced the first revised estimates of GDP for 2017-18, the second revised estimates for 2016-17 and the third revised estimates for 2015-16. Previous estimates for 2011-12 to 2016-17 were released in January last year while provisional estimates of 2017-18 were released in May.