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GDP will bounce back despite fall; RBI Governor Urjit Patel

RBI Governor Urjit Patel
RBI Governor Urjit Patel has said that GDP will bounce back in the longer run despite experiencing a dip due to demonetization.

In an interview to CNBC TV18, RBI Governor Urjit Patel spoke openly on demonetization and its impact on the economy in the longer run. He stated that despite the slight fall recorded in the economy, it will bounce back with a “sharp V” reading on the graph.

Talking about demonetization, he added that the decision to implement it was touch and full of challenges, however, the first phase has been completed without major challenges. He also added that remonetization was planned to take place at a much faster pace and it has happened.

Last week, RBI had announced that India’s GDP had dipped 2 base points to 6.9% in the current fiscal year as compared to 7.1%. However, RBI also estimated the GDP to bounce back a big way in the next year to 7.4%. While asked about whether the country can achieve 9% GDP growth in the near future, Patel stated that it is an ambitious thing which needs a lot of fundamental reforms in production like land and labor. He also added that drafting things again after recalling 86% currency will take time and the results will start to show up slowly.

About the author

Kunwar Prithvi Singh Chauhan

Part time journalist, full-time observer. Editor-in-Chief at The Indian Wire. I cover updates related to business and startups.

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