India's GDP growth slips down to 7 pct in December quarter of 2016

India's economic growth rate slipped to 7 percent in third quarter of the current fiscal year, officials said on Tuesday.

"India's December quarter GDP stands at 7 percent in the demonetization period from October to December last year," India's Chief Statistician T C A Anant told media in New Delhi.

The 7-percent rate recorded - following last year's controversial ban on high value currency notes in the country - was slower than the previous quarter's rate of 7.4 percent.

Although the growth slowed compared to previous quarter, however, it beat predictions by most of the economists that the economy would suffer in wake of government's demonetization move.

Indian Prime Minister Narendra Modi's decision in November last year to withdraw currency notes of 500 and 1,000 Indian rupees from India's financial system triggered panic among the people who queued outside banks and ATMs to exchange the banned currency notes and withdraw cash.

The sudden decision took 86 percent of the currency out of circulation overnight from India.

India's federal statistics office Central Statistical Organization (CSO) has pegged advance GDP growth estimate for current fiscal at 7.1 percent.

"The growth in GDP during 2016-17 is estimated at 7.1 percent as compared to the growth rate of 7.9 percent in 2015-16," a statement issued by CSO said.

Analysts said it was too early to make assessments about the impact of demonetization and a clear picture will come out in the fourth quarter. Endit