The GDP Growth rate has fallen after demonetisation
Modi-led government has continued to justify demonetisation and refute even bourgeois economists’ assertion that it has hurt the economic growth. It has refused to accept that crores of workers lost their livelihood for months and lakhs of small and medium sized enterprises were forced to shut-down in the absence of cash post-demonetisation.
GDP growth data released by the CSO recently confirms that there has been significant drop in the growth rate during the fourth quarter of Jan-Mar 2017 when the full impact of the cash shortage caused by demonetisation was felt. Quarterwise GDP data also shows that GDP growth rate has been steadily falling from quarter to quarter during the year. While the Modi government is celebrating its three years of success, the data shows that even by its own data and measure of the GDP, the growth rate has been the lowest during 2016-17 during its three years of rule.
People anyway never believed the lofty claims of growth rate as they saw no growth in jobs nor any improvement in their life. Many bourgeois economists too have been expressing doubt about the correctness of GDP numbers after the method of calculation was changed. GDP growth, however high, does not mean anything for people unless they see better opportunities of livelihood, improvement in wages and fall in prices of essential commodities.