As per it, the dismal growth also reveals of the hiccups caused by the GST roll-out amid slowdown in manufacturing activities.
The fall in GDP growth rate to a three-year low of 5.7 per cent in the first quarter of 2016-17 shows that the problem is more structural than transient, says a report.
The dismal growth also reveals of the hiccups caused by the GST rollout amid slowdown in manufacturing activities.
The SBI's research report Ecowrap says the negative impact of the GST on growth has been "majorly emphasised".
"Though there has been a lot of talk about manufacturing de-stocking ahead of GST and its impact on GDP, a significant de-stocking in both consumer, as well as investment intensive sectors, was already taking pace in 2016-17," says the report.
As many as 1,695 listed firms were surveyed for the report.
As per the report, there was significant de-stocking in both in consumer and investment intensive sectors in 2016-17, which means that there was general slowdown and companies have been running down the existing inventory.
The study of over 2,000 listed companies revealed that 40 out of 69 sectors have shown quarter-on-quarter decline in sales and this is much lower than the 2016-17 growth rates, it said.