India paying hefty price for demonetization, GDP downturn ‘very worrying’: Economist Kaushik Basu


India’s GDP growth dropped to a three-year low of 5.7 per cent during April-June as manufacturing dipped and impact of the demonetization lingered on in the third quarter.  The downturn in India’s growth is “very worrying”, World Bank’s former chief economist Kaushik Basu said, underscoring that this is the “hefty price” the country had to pay for demonetization. “The downturn in growth is very worrying. I knew it would go below 6 per cent because the demonetization was a big negative shock to the economy. But 5.7 per cent growth is lower than I expected,” Basu, the former senior vice president and chief economist of the World Bank said.  Basu said…

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