Had correctly predicted economy to slow down as a result of demonetisation, says P Chidambaram
Former Union minister P Chidambaram today said that he was right in predicting that the economy will slow down as a result of the Modi government’s move to demonetise high-denomination currency notes last year.
Chidamabaram’s comments came after the GDP growth for the fourth quarter, ending March this year, fell sharply to 6.1 per cent from seven per cent in the previous quarter.
"I had said demonetisation will affect growth by 1-1.5 per cent. Spot on. GVA down by 1.3 per cent," said Chidambaram on his official Twitter account.
"Economy began slowing down in July 2016. Demonetisation made it worse," he added.
Demonetisation took a toll on the Indian economy with the Gross Domestic Product during the fourth quarter, ending March this year, falling sharply to 6.1 per cent from seven per cent in the previous quarter while growth for the year as a whole also declined correspondingly.
Data released by the official statistician on Wednesday showed that India's GDP during the past fiscal grew at 7.1 per cent, at a rate lower than the 8 per cent achieved in 2015-16.
(With IANS inputs)