Cash crunch: Analysts cut India GDP growth forecast
- Rahul Gandhi to begin three-day Gujarat visit from Monday
- Narayan Rane to meet Amit Shah in Delhi tomorrow
- Germany Elections: Angela Merkel wins 4th term as far-right enters parliament
- Eye on 2019 Lok Sabha elections, Mayawati to hold rallies across India
- Maruti Suzuki Dzire overtakes Alto as India’s best-selling car in August
Securities houses and rating agencies have cut their estimates of India’s GDP growth in anticipation of temporary headwinds from the 8 November demonetisation of high-value currency notes.
The scrapping of Rs1,000 and Rs500 currency notes, in an attempt to curb black money, has led to a cash deficit as banks struggle to replace the demonetized currency.
The move could also dent consumption growth in Asia’s third-largest economy, which would otherwise have received a boost from a bountiful monsoon. And in the short term, the consumption that would have been fueled by black money will come to a halt.