Have we overestimated the role of cash in India economy?
To say the least, the Q3 GDP estimates and the revised full-year estimates of GDP were a big surprise. Over the last few weeks estimates for Q3 GDP ranged from 5.6% to 6.3% while full year GDP ranged from 6.1% to 6.5%. It was therefore a pleasant surprise when the CSO announced 7% GDP growth in Q3 and an estimated 7.1% for the full year. Does it mean that the impact of the demonetization has passed uneventfully or does it mean that there is something in the figures that do not meet the eye? Continue reading