Post Modi's UP victory, analysts sing a different tune on demonetisation

Predictions of slower economic recovery and job loss appear to have been turned on their heads

Analysts at top brokerages seem to have changed their views about the impact of demonetisation on the economy, including that on key parameters such as jobs. 

Prime Minister Narendra Modi had on November 8 announced the demonetisation of the old series Rs 500 and Rs 1,000 notes. 

Analysts and economists had predicted that the exercise, which sucked out about 86 per cent of the cash in circulation from the economy, would adversely affect growth.

But, estimates of gross domestic product (GDP) growth for the third quarter (October to December, Q3) of the current financial year (2016-17), at 7 per cent, released