Demonitization,GST effect:GDP fell to 5.7 the lowest in last three year

After the big denominations got demonitised, Manmohan Singh called it a "monumental disaster" and warned that this could set the country's GDP back by two percentage points.But his views were brushed off and was asserted by BJP that demonitzation would only bring ‘ache din’ progress for India.

And they did. On August 31, the Central Statistics Office said GDP growth had slipped to 5.7 per cent in the April-June quarter, the lowest in three years.



The reserve Bank of India also said, all the demonitised money came back, with no black money being caught due to demonitisation. Not only did the country suffer, due to lack of currency but also RBI suffered and had to pay extra cost for printing and distributing new currency within the span of time mentioned by the government.

After demonitisation , GST started effecting the GDP. Thus, these two are doing more harm to the country , than good. The country’s economical growth had been falling lately and the GDP has dropped from 9.2 percent to 5.7 percent