Economic Survey projects FY18 GDP growth at 6.75-7.5% post demonetisation

FY17 GDP growth reduced by 25-50 basis points due to note ban

The real GDP growth in 2017-18 is projected to be in the range of 6.75-7.5 per cent, said the Economic Survey 2016-17. The government has said that the adverse impact of demonetisation on GDP growth would be transitional. The Economic Survey, presented in Parliament by Union Finance Minister Arun Jaitley, has stated that once the cash supply is replenished, which is likely to be achieved by end-March 2017, the economy would revert to normal.

The Economic Survey pointed out that demonetisation would have both short-term costs and long-term benefits. Briefly, the costs include a contraction in cash money supply and