Remonetisation near complete, says Centre
Shaktikanta Das says impact was temporary and limited.
New Delhi: Despite demonetisation, India’s GDP grew by 7 per cent between October and December 2016 (third quarter 2016-17) to retain the title of the world’s fastest-growing major economy, according to the data released by the government on Tuesday.
Economic affairs secretary Shaktikanta Das said that the process of remonetisation has progressed well and was completed on Tuesday and there is no complaint of cash shortage from banks.
“The overestimation that was done about the so-called negative impact of demonetisation it is very satisfying to know that it is not there. Because we still remain 7 per cent plus growth country,” said Mr Das. He said the impact of demonetisation was temporary and was limited to consumption.
Rating agency ICRA indicated that government estimates for GDP rely heavily on available data from the formal sector, which is expected to have weathered the note ban better than the informal sector and the data may not be fully capturing the impact of the note ban. It said that subsequent estimates that draw from wider data sources, may well revise third quarter growth downward.