Demonetisation impact was noticeable on the informal sector which was dependent on cash, in the later part of the FY17, said IMF’s Deputy Director for research Gian M Milesi-Ferretti.
International Monetary Fund (IMF) maintained India’s growth forecast at 7.2% in FY18, saying the growth path is on-track with medium-term prospect favourable. However, in an exclusive conversation with Network18’s Marya Shakeel, IMF’s Deputy Director for research Gian M Milesi-Ferretti cited temporary negative consumption shock induced by cash shortages as a speed bump.
He said the demonetisation impact was noticeable on the informal sector which was dependent on cash, in the later part of the FY17 but is likely to felt even in early part of FY18.
“India is still a fast growing large economy in the world and we actually have forecast for India which envisages somewhat faster growth going forward, thanks to the implementation of GST,” he said.
