India’s economy witnessed a marginal acceleration, growing at 7.3% in the second quarter of 2016-17. Gross Domestic Product (GDP) expanded by 7.1% in the first quarter of 2016-17 and at 7.6% in the corresponding quarter last year. However, expectations are that growth will suffer a setback in the second half of the year on account of the impact of demonetisation. This will make the government’s target of surpassing last year’s 7.6% growth this year difficult.