The domestic brokerage firm said that even as the print had more informed inputs at hand, specifically IIP, revised crop production estimates and listed companies' financials until third quarter of this fiscal, "the data coverage is still incomplete".
impact was inconspicuous as data signalled mixed trends.
However, the data coverage is not yet holistic as unorganised sector remains to be completely factored in." The domestic brokerage firm said that even as the print had more informed inputs at hand, specifically IIP, revised crop production estimates and listed companies' financials until third quarter of this fiscal, "the data coverage is still incomplete".
Specifically, the cash-sensitive unorganised/SME segment is still not covered, implying that FY2017 estimates do not give a holistic picture, it added.
It further said that a more complete picture of the economy will be reflected only in the first revised estimate of FY2017 due to be released in January 2018.
Private sector lender IDFC Bank said services sector has been hit the hardest by the demonetisation exercise, but the economy was able to show a 6.6 growth on GVA basis due to an uptick in agricultural activity and industrial sector.
"Services sector did see an impact of demonetisation with growth sliding to 6.8 per cent from 8.2 per cent in Q2 FY17.
The decline in services growth is attributable to financial, real estate and professional services category," a note from the bank said.
According to Bank of America Merrill Lynch (BofAML), demonetisation hit growth by over 100 bps.
"Although December quarter (GVA) growth, at 6.6 per cent, surprised on the upside, it is still lower than the 7.5-8 per cent projected by us in the second half of 2016-17 before the demonetisation shock. In the old GDP series, growth continues to stagnate at 4.5-5 per cent levels," it said.
Echoing similar sentiments, analysts at Capital Economics said in a note: "Official GDP data showing only a gradual slowdown in Indian growth in Q4 is hard to square with other more reliable monthly data which show activity slowed sharply towards the end of last year following the introduction of demonetisation in November."
The Congress party also dubbed the GDP numbers as "surprising" and "highly suspect" saying that it could dent India's global credibility and accused the prime minister and the finance minister of "misleading" the public.
"The GDP numbers that have been released are surprising and highly suspect. The GDP growth as projected is questionable and will also undermine the credibility of Indian data globally," Congress spokesperson Anand Sharma said.
However, Finance Minister Arun Jaitley said that third quarter GDP data belies the exaggerated claim by many that rural sector was in distress as agri growth is at record high.
Jaitley further said that remonetisation is up substantially and its combination with economic resilience has shown some signs of return of growth.
"The Indian economic growth is likely to pick up further in coming quarters," Jaitley said.
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
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