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Note ban may lead to huge drop in economy: Kaushik Basu

About 98% of India's total transaction takes place in cash & giving a shock to it has not been good economics, says former World Bank chief economist

Kaushik Basu
Kaushik Basu

Even if India manages to sail through the current financial year with a minor dent in its economic growth rate, financial year 2017-18 could witness big downturn due to the demonetisation drive, warned Kaushik Basu, former chief economist of the World Bank and former chief economic advisor to the government of India.  The direct impact of the demonetisation has been obvious, which is wastage of time and productivity as people stood in queues outside cash vending machines and banks. But, the second and third round of impacts, that will come into play a few months down ...