Demonetisation could dent GDP growth by 1%: Pankaj Patel

Interview with president, Ficci

Pankaj Patel has taken over as Ficci president at a time when the economy is reeling under the impact of demonetisation and the Budget is barely a month away. He tells Veena Mani and Indivjal Dhasmana that the government should cut direct tax rates to prop up the economy. He says Place of Effective Management (POEM) and the General Anti-Avoidance Rule (GAAR) should be deferred. Edited excerpts:

What is your assessment of the impact of demonetisation on the economic growth for the current financial year?

Our survey suggested that GDP would grow by 7.3% in the current financial year. Subsequently,