Finance Minister Arun Jaitley on Wednesday said that the Q3 GDP growth figure of 7 per cent belies apprehensions on the effect of demonetisation on growth.
"Demonetisation, admittedly, had led to the squeeze of currency because this was the period during which the replacement of high denomination currencies was taking place and many people were apprehensive to what its impact on overall growth would be, " he told reporters on his return from 5 - day Britain trip.
"And I think, the GDP data for Q3 really reflects the position, " he said.
The figures also belie exaggerated claims made by many that the rural sector was heavily in distress, Jaitley said.
India's GDP for the third quarter ended December, estimated at Rs 30. 28 lakh crore, recorded a growth of 7 per cent, compared with 7. 3 per cent in the second quarter, official data showed on Tuesday.
Industry said the figures were in line with expectations.
The estimates of GDP growth for the full fiscal 2016 - 17 at 7. 1 per cent, marked a sharper fall from the 7. 9 per cent recorded for the fiscal 2015 - 16.