Demonetisation will have significant impact on GDP: Manmohan Singh

New Delhi: Reiterating his view that the demonetization would adversely impact the country’s GDP, former Prime Minister and noted economists Manmohan Singh today said that the NDA government's decision would have a ‘significant’ impact on the GDP. "You will see there will be a very significant adverse effect on the country's GDP ,"Dr Singh said at a press conference where he released the manifesto of the Congress for the Punjab assembly polls.

‘’I had said in Parliament that demonetization will have a very adverse impact on the GDP of the country. The subsequent developments have proved me right,’’Dr Singh said. Referring to the recent projection by the National Income Unit of the Central Statistical Organisation that the GDP in 2016-17 will slow down to 7.1 per cent from 7.6 per cent a year earlier, Dr Singh said,’’this has not taken account of the impact of demonetization.’’

The former Prime Minister said that demonetization will be an issue in the upcoming assembly elections in five states. ‘’It will be an issue in the assembly elections in five states,’’he said. Speaking in Rajya Sabha during a debate on the Demonetisation issue, Dr Manmohan Singh was highly critical of demonetization decision and has predicted a 2 per cent drop in the country's GDP due to it. During his speech in the Rajya Sabha , Dr Singh had said the implementation of Demoneitsaiton was a "monumental management failure" and had termed it as a case of "organised loot and legalised plunder.(UNI)