India’s Economic Growth Lose Steam due to Notes Ban in November

The economy of the seventh-largest country in the world experienced a steep decline in the first quarter of the year. Reflecting the November’s ban implemented by the country’s Prime Minister, Narendra Modi, triggered by the shortage of cash because this event brought a significant impact in the following months. The economy strengthened by 6.1 percent during the first three months of 2017 versus the same period in 2016. It further compared with the 7 percent increase gained amid last quarter, wherein the India’s leader announced his plan of radical demonetization.

The issued data on Wednesday officially acknowledges the effect of stripping the nation’s currency towards the economic activity of India.

As the financial year ended in March, the Indian economy acquired by 7.1 percent growth in contrast with the 8 percent gained in the same period and 7.5 percent in March 2015. The downturn highlights the ongoing dilemmas confronted by Modi, elected three years ago affirming for the revival of the country as well as generating more jobs for the young people

The construction industry shrunk by 3.7 percent that pulled the economy to its lowest level. While real estate, financial and professional services expanded by 2.2 percent as shown in the report. The muted private sector activity though was driven by the sudden surge in government activities under defense, public administration, and others gaining 17 percent on year.