India’s GVA is likely to grow at 6.6 per cent in 2016-17: ICRA

India’s GVA is likely to grow at 6.6 per cent in 2016-17: ICRA The domestic rating agency ICRA has forecasted India’s gross value added (GVA) growth to be at 6.6 per cent in 2016-17. This is because the economic activity would take more time to normalise due to the government’s move to demonetise high-value notes. The report said that the currency liquidity is likely to improve significantly

by the end of January 2017, however, the economic activity may take longer to normalize.

According to the report, the loss of income in some sectors and deferral of consumption is likely to weigh on capacity utilisation in the second half of 2016-17, delaying capacity expansion plans of the private sector. It predicted that the implementation of the Goods and Services Tax (GST)  before September 16, 2017, would dominate the economic landscape.