Nov 30, 2016 03:30 PM IST IST | Source: Moneycontrol.com

Aditya Puri debunks some economists' theory that GDP could fall

In an interview to the Business Standard, HDFC Bank Managing Director Aditya Puri said that demonetisation shouldn't be looked at as a single, standalone event, but should be put in the context of overall measures that will drive India towards a cashless economy.

Moneycontrol Bureau

In an interview to the Business Standard, HDFC Bank Managing Director Aditya Puri said that demonetisation shouldn't be looked at as a single, standalone event, but should be put in the context of overall measures that will drive India towards a cashless economy.

Talking about the effect on banks, Puri admitted that there is bound to be a 'temporary aberration'. Government will invariably look to suck out excess cash from the system through measures such as the 100 percent CRR. He also stressed that once there are enough securities, RBI could ease the CRR.

Pain is a given, considering the demonetisation drive was kicked off overnight, and secrecy had to be maintained, he said.  

He also debunked many economists' theory that India's economy will grow at a slower pace and dip 50-200 basis points.

"I think it is absolute nonsense. How many times have anlaysts and economists been right? Some people say GDP will become 2 percent, some say 6 percent. The question is how do they know GDP will fall?"
Sections
Follow us on
Available On