GDP growth is likely to be affected by between 0.3% to 0.5% due to the fallout of demonetisation, a CARE Ratings study has found.
The report said that services sector will be affected sharply in Q3 which cannot be recouped in Q4, though the intensity will reduce over the 7- week window ending December 31.
While the manufacturing sector gets affected on both demand conditions being low as well as SMEs managing cash. But these losses can be compensated for in Q4 to some extent. For instance, consumer goods purchase could be deferred to Q4.
Agricultural shocks have been witnessed in the first 2 weeks only and would get diluted by end-November, the report said.