Demonetization Pushed India’s Economy to Three Years Low

Demonetization seems to have affected Indian Economy Big Time as the Growth Rate of the Country reportedly tanked to three years low according to the reports. The Growth Rate is just 6.1% in the next quarter (Jan to March) after the Demonetization Exercise.

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During the same time, China registered 6.9% Growth Rate. Due to the Demonetization Impact, GDP of India in 2016-17 is recorded at 7.1% while it is 8% in 2015-16 and 7.5% in 2014-15%. The government, however, says it is expected and the benefits of Demonetization will be felt in the coming days.

In a historic decision on November 8th, Prime Minister Narendra Modi flushed the then 500 and 1,000 rupee notes, which accounted for 86 percent of the total currency in circulation. These notes account to 15.6 Lakh Crore of money in total. Economists believe that a majority of that is back in banks.