Demonetisation, hasty GST implementation adversely affected GDP: Manmohan Singh

Singh in his Parliament speech had described demonetisation of Rs 500 and Rs 1000 notes as a “monumental mismanagement”, “organised loot” and “legalised plunder”

Former Prime Minister, Dr Manmohan Singh said that hasty implementation of GST and demonetisation had adversely impacted GDP growth.

"Both demonetisation and the GST have had some impact (on GDP growth)," he told CNBC-TV 18. "Both would affect the informal sector, the small-scale sector, the sectors today are responsible for 40 per cent of GDP."

With informal and small-scale sectors accounting about 40 per cent of the USD 2.5 trillion economy, Singh said that the decision of demonetisation, coupled with GST, had an adverse impact on the economy. "And the withdrawal of 86 per cent of currency plus also GST, because it has been put on practice in haste, there are lots of glitches which are now coming out. These are bound to affect the GDP growth adversely," he said.

Singh in his Parliament speech had described demonetisation of Rs 500 and Rs 1000 notes as a "monumental mismanagement", "organised loot" and "legalised plunder" which would eventually shave off 2 per cent of the country's GDP.

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