Demonetization is an organised loot, will drag GDP by 2%: Manmohan Singh
Demonetization will cause 1.5% GDP loss: P. Chidambaram
India could lose Rs. 4.7 lakh crore from GDP: West Bengal Finance Minister
FY17 GDP growth estimate cut down to 3.5% from 6.8%: Ambit Capital
Rumours, Anecdotes, Theories, Assumptions and Propaganda – All fell flat like a house of cards when countered by Data.
PM Modi’s decision last November to outlaw old 500 rupee and 1,000 rupee banknotes was projected as the biggest blunder by various left leaning economists and some journalist masquerading as economist went on to the extent of saying that Narendra Modi is pulling India back to the 1970s. However, Tuesday’s robust GDP figures have left economists across the world dazed and the mainstream media which was busy ranting against demonetization quoting estimates is currently busy building up a different narrative and probably has no time to discuss and debate actual data.
As per the Central Statistics Organisation (CSO), India’s Gross Domestic Product (GDP) grew at a healthy rate of 7% in the October-December quarter belying all grim forecasts inspired by the impact of demonetization.
Much to the anguish of many Harvard and Oxford Graduates, the government of a tea seller has succeeded in maintaining the economy’s growth at 7% and the numbers seem to completely negate the kind of negative projections and speculations which were being made about the impact of demonetisation.
Even more interesting is that the CSO data showed that private final consumption picked up in the third quarter to grow 10.1% against 5.1% in the second quarter. Manufacturing demand grew 8.3% in the third the third quarter as against 6.9% in the second quarter- the two sectors which were supposed to receive the maximum hit due to a possible falling consumption demand.
According to the previous CSO report GDP had grown at 7.4% in the July-September quarter this fiscal. Being only a tad slower in the October-December quarter India’s GDP growth is still higher than China’s 6.8℅ growth in these three months.
India thus proudly wears the crown of world’s fastest growing economy despite (no not demonetization) the presence of several Jaichands.