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India Will Make Up For Growth Rate Decline In The Next Fiscal Year, Says Arvind Panagariya

"We would make up for what we lose."

03/01/2017 6:41 PM IST | Updated 03/01/2017 7:08 PM IST
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NEW DELHI -- Niti Aayog vice-chairman Arvind Panagariya on Tuesday said demonetisation would have some impact on the economy in the third and fourth quarter of this fiscal but the country would make up for those losses in FY 2017-18."

In the quarter in which the demonetisation decision was made and possibly even the quarter that follows which will be the last quarter of the fiscal 2016-17, we might see some decline in the growth rate," Panagariya told CNBC-TV18. "...the impact is going to be small and subsequently as we get into the next fiscal 2017-18, we would make up for what we lose in these two quarters," he said.

Asked whether the government is contemplating of providing big stimulus post-demonetisation, Panagariya said it is too early to jump on any conclusion and one must wait to see the economic impact of demonetisation.

"So whether or not we need a stimulus etc. The answer to that question will depend on what we observe," the Niti Aayog vice-chairman noted. Panagariya further said that some room for increased expenditure may nevertheless come from higher revenues and that is generally a good news.

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