Oct-Dec GDP growth at 7%: Q3 numbers negate impact of demonetisation, says Shatikanta Das

New Delhi: Elated at the GDP numbers, the Ministry of Finance on Tuesday said the 7 percent growth in the third quarter has negated the negative projections and speculations about the impact of demonetisation on growth. Economic Affairs Secretary Shaktikanta Das said the third quarter and the 7.1 percent growth projected for the full fiscal are “definitely something noteworthy”. [caption id=“attachment_3307876” align=“alignleft” width=“380”] Shaktikanta Das. Image courtesy: PIB[/caption] “We had said that most of the reports were anecdotal, not based on statistics. There were reports that manufacturing activities in many sectors were affected due to demonetisation but as we see from the numbers manufacturing growth at very 8.3 percent is a very satisfying number and promising number,” Das told reporters here. The process of remonetisation has progressed well and was completed on Tuesday, he said, adding there is no complaint of cash shortage from banks. Some complaints of shortage are coming from ATMs, that is being handled by the Reserve Bank of India (RBI), Department of Financial Services and individual banks by providing notes, he said. “An overestimation was done about the so called negative impact of demonetisation. It is very satisfying to know that it is not there. Because we still remain 7 per cent plus growth country… “The third quarter GDP numbers are out and as you have seen the numbers completely negate the kind of negative projections and speculations made about the impact of demonetisation,” Das said. He said the impact of demonetisation, coupled with GST and the series of reforms which the government has undertaken looks very promising. “The real estate sector has apparently not done so well. It’s not a satisfactory number, we have to remember that the sector itself is going under a major structural reform. Going forward we should see improvements in the sector,” Das said. He said the impact of demonetisation was temporary and was limited to consumption.