Demonetisation may Hurt India’s GDP growth this quarter but Future is superbly stabilized and bright’ This is the common notion which many business studies and financial experts are deducing as after effects of Demonetisation of Old Rs 500 and Rs 1000 currency notes. So when Man Mohan Singh only talks about GDP loss, he is intentionally feeding half truth and half lies.

 

The impact of demonetisation on India’s GDP growth is clearly going to be negative in the short run but on the positive side it may improve the fiscal position, according to Fitch Ratings.

Thomas Rookmaaker, Director in Fitch’s Asia-Pacific Sovereigns Group, said macroeconomic effects of cash crunch due to demonetisation include a temporary delay of consumption and investment, disrupted supply chains, farmers being unable to buy inputs, and some loss in productivity due to time lost to deal with cash issues.

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There will be a little bit of blip as we go through this quarter, but growth will resume from next quarter: Jayant Sinha