The government on Tuesday said it is not possible to pinpoint the impact of demonetisation on GDP as economic growth is contingent on a number of factors. “The economic growth of a country depends on a number of factors including structural, external, fiscal and monetary factors (which is partly reflected by demonetisation). Therefore, it is not possible to pinpoint the impact of demonetisation on India’s GDP,” Minister of State for Finance Arjun Ram Meghwal said in a written reply to the Rajya Sabha.
Meghwal, however, added that as per the second advance estimates released by the Central Statistics Office on February 28, based mostly on information for the first nine to ten months of 2016-17, the growth rate of gross domestic product (GDP) at constant market prices is estimated to be 7.1 per cent in 2016-17.