What explains 7% GDP growth despite Modi’s demonetisation drive?
Strategic timing of demonetisation and fiscal stimulus seems to have helped in retaining growth despite demonetisation
New Delhi: GDP estimates for third quarter of FY 2016-17 have surprised many people. Despite headwinds to growth from demonetisation, GDP growth has been pegged at 7% in quarter ending December 2016, while overall growth for FY 2016-17 has been estimated at 7.1%. This is in stark contrast to various estimates, including the International Monetary Fund’s which had expected economic growth to fall to 6% in the second half of the current fiscal year.