NITI Ayog meeting called to discuss economic recovery measures post demonetisation

Prime Minister Modi has called a meeting of NITI Ayog officials along with that of Ministry of Finance to design economic rebuilding after demonetisation. The meeting is scheduled to be held on Tuesday and is expected to bring the thoughts of all the available resource persons associated with the government.

Government is reinforcing quickly as the note ban impact is not going to be settled by December 30- the promised deadline by the Prime Minister. Indications are that continuing cash crunch may develop distrust about demonetisation among people. Similarly, the momentum and popular mood may shift away from attack on black money to cash crunch created hardships.

The meeting will discuss the extent of damage happened to the lower sections of the economy especially the unorganised sector. Lack of demand for several commodities and temporary labour supply have put informal sector the most affected segment.

Several forecasts also indicate that the country is going to shed at least 1 to 2% growth in GDP. Several private and independent forecasters predict at least a 2% decline in GDP growth. On the other hand, official estimate especially, the RBI believe that economy can achieve 7.1% growth.

The NITI Ayog meeting thus is expected to discuss strategies in the context of continuous cash crunch difficulties even after 50 days of demonetisation. 

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