After the much-hyped ban on the big currency notes by Modi Government, the GDP growth that was supposed to fall on a significant pace is now expected to rise at a shocking rate of 7.1 % in the current financial year. According to the Central Statistics Office, although the climb is quite slow-moving if compared to the 7.9% growth in 2015-2016, still this substantial improvement is likely to give the Modi Government the much required sinew to defend its move to ban the big notes which was severely criticized by a number of critics across the country.
Maintaining a steep growth by 7% during October-December, the overall Indian economy has managed to showcase a relative development despite a number of controversies post demonetization. Rather, the economists in the country have identified the growth as quite similar to the previous quarter, i.e, in early January.
Moreover, in spite of the rumors that demonetization led to huge job losses as an impact of less production on the overall economy after November 8, 2016, the brunt didn’t last for more than a month. Now, with the International Monetary Fund and the RBI reducing cut growth estimates by one percentage point, some enterprises have also assumed a climb of 6% by mid December.
Apart from the predictions of the financial experts, several Government agencies have also foretold the upward GDP estimate for the first and second cut ups to 7.2% and 7.4% respectively which indicates nothing but a steep economic activity.