India's economic growth is estimated to slow to 7.1 percent in the current fiscal year ending March 31 compared to 7.6 percent last year, the first indicator of the impact of the demonetization drive.

The data released Friday by the Indian Central Statistics Office comes as the country has seen a sharp cash shortage following Prime Minister Narendra Modi's surprise announcement Nov. 8 pulling India's highest value bank notes out of circulation. The move has wiped out 86 percent of India's currency and is aimed at ending tax fraud, corruption and pushing India toward digitization.

Experts have said the move could push GDP growth to below 6.5 percent this year as demonetization has hit all parts of the economy.