IMF-India’s economic growth slowed from 7.6% to 6.6% due to demonetization

According to the IMF, the revised estimate for India’s growth in 2016 is 6.6 percent as against 7.6 percent in 2015. This is mainly due to the currency withdrawal and exchange crisis, says the International Monetary Fund.

“In India, the growth forecast for the current (2016–17) and next fiscal year were trimmed by one percentage point and 0.4 percentage point, respectively, primarily due to the temporary negative consumption shock induced by cash shortages and payment disruptions associated with the recent currency note withdrawal and exchange initiative,” the report said.

The effects are also predicted to affect this year’s growth which is predicted to be 7.2%.Earlier, IMF had projected 7.6 percent last year(2016) and this year(2017).