NEW DELHI – The government’s note ban move clearly had a debilitating impact on India’s economy, the industry said today, after GDP data showed growth declined to 6.1% in the January-March quarter.
India lost the tag of the world’s fastest growing major economy to China with a gross domestic product growth of 6.1% in the fourth quarter.
“For the sake of jobs, we need to get our act together and get the growth momentum in place. There is a call on the RBI to reduce the interest rates and boost confidence.
“One only hopes that the impact of demonetisation has played out and does not spill into the current financial year,” Assocham president Sandeep Jajodia said.
Ficci president Pankaj Patel said the fourth quarter numbers point towards moderation which can be attributed to the ban of high denomination currency notes last year.
However, he said the process of remonetisation is almost complete and growth impulse is gradually gaining momentum.
