India plays down hit to growth from Modi’s cash crunch
India’s growth rate will slow by up to half a percentage point due to the government’s decision to scrap high-value banknotes, the top finance ministry economist said on Tuesday, challenging independent estimates of a far bigger impact. Chief economic adviser Arvind Subramanian rejected the view of the International Monetary Fund, where he used to work, that growth would be knocked a full percentage point lower by prime minister Narendra Modi’s shock decision in November to scrap 86 percent of the cash in circulation. Modi launched the “demonetisation” drive to expose untaxed wealth and the proceeds of crime and corruption. Yet…
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