India’s Economic Growth Seen Slowing to 7.1%
India’s economic growth is estimated to slow to 7.1% in the current fiscal year ending 31 March compared to 7.6% last year, the 1st 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 on 8 November pulling India’s highest value bank notes out of circulation.
The move has wiped out 86% 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% this year as demonetization has hit all parts of the economy.
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