Demonetisation could dent GDP growth by 1%: Pankaj Patel

 

LATEST NEWS – Pankaj Patel has taken over as Ficci president at a time when the economy is reeling under the impact of demonetisation and the Budget is barely a month away. He tells Veena Mani and Indivjal Dhasmana that the government should cut direct tax rates to prop up the economy. He says Place of Effective Management (POEM) and the General Anti-Avoidance Rule (GAAR) should be deferred. Edited excerpts:

What is your assessment of the impact of demonetisation on the economic growth for the current financial year?

Our survey suggested that GDP would grow by 7.3% in the current financial year. Subsequently, we haven’t conducted any survey. The Reserve Bank of India has revised down its forecast about the GDP growth. There will be some impact but we expect it to be less than one percentage point for the entire 2016-17 compared to last year.

The purchasing managers’ indices for services and manufacturing have contracted for December. The author of the survey says GDP growth will slow down in Q3. What is your take? READ MORE

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