JOIN USA day after India logged in 7% economic growth in the October-December quarter, the months majorly hit by demonetisation, Finance Minister Arun Jaitley on Wednesday hit back at note ban critics, saying that the GDP number belies exaggerated claims made by many that the economy was hit.
“Demonetisation, admittedly, had led to the squeeze of currency because this was the period during which the replacement of high denomination currencies was taking place, and many people were apprehensive to what its impact on overall growth would be,” he said on his return from the UK, where he was on a five-day official visit.
“I had consistently maintained that the revenue (tax collection) figures, which actually show the real level of growth, indicated that the growth was there, and some areas could be adversely impacted, particularly those which were cash dominated and also a part of the shadow economy, and even constituted parts of the informal economy,” Jaitley said.
Jaitley also took on critics for their forecast of agriculture getting hit by the note ban excercise of November 8. He said on the contrary agriculture growth had contributed to an unexpected third quarter GDP growth rate of 7%.