The economy would have grown under-6 per cent in the third quarter, destroyed by the note ban, according to SBI Research.
The government will release the December quarter GDP print on February 28.
SBI research holds GDP growth to be decisively lower than 6 per cent in Q3 at 5.8 per cent and 6.4 per cent in Q4.
Overall, the estimate for H2 is 6.1 per cent with a downward bias against CSO's 7 per cent and the fiscal 2017 growth at 6.6 per cent.
In the next year growth could move up faster if demand comes back faster post-remonetisation, it added.
The report said growth will be pulled down by the poor show by sectors like construction, real estate, cement and FMCG, which are likely to witness a decline in sales in Q3 and will recover thereafter.
With the CSO (Central Statistics Organisation) estimate of 7.1 per cent for fiscal 2017, the Q3 and Q4 GDP growth would be around 6.1 per cent and 7.8 per cent.
This is improbable given the extent of liquidity shock that has led to a drastic consumer spending shock.
The 7.1 per cent GDP estimate by CSO implies a 7.8 per cent GDP growth in Q4, which looks highly unlikely.
As per the CSO, GDP is likely to grow by 7.1 per cent in fiscal 2017 compared to 7.9 per cent a year ago.
RBI, on the other hand, estimated GVA growth at 6.9 per cent as against its earlier estimate of 7.6 per cent. Of this 70 bps reduction, 35 bps are attributed to demonetisation and the rest to base effect.
CSO: Know More- The Central Statistics Organisation (CSO) of India is responsible for co-ordination of statistical activities in India.
- It also oversees evolving and maintaining statistical standards.
- It has a well-equipped Graphical Unit.
- The CSO is located in Delhi.
- Some portion of Industrial Statistics work pertaining to Annual Survey of industries is carried out in Calcutta.
