India GDP former finance minister Chidambaram says too early to celebrate

by Dramelin 10:30 PM 0 comments

But he acknowledged that it was too early to tell if the demonetization shock on the economy is over.
"But the sharp decline in our rural demand indicator indicate that this data point could be prone to revision in subsequent releases," they said.
A question many asked is how accurately did the quarterly GDP figures capture the impact of demonetization on India`s sizable informal sectors, where much of the transactions happen in cash.
Experts say the quarterly statistics use data on organized sectors as a proxy for India`s unorganized sectors, implying the numbers may not accurately capture the effects.
Citigroup economists Samiran Chakraborty and Anurag Jha said a combination of good monsoon rains crucial for farmers, wage hikes for public sector employees and festival demand were supportive for consumption demand.