India Ratings, on Friday lowered its GDP forecast for 2016-17 to 6.8% from 7.8% earlier, stating that the demonetization drive will lead to an erosion of Rs 1.5 trillion this fiscal. "We have revised GDP growth forecast for 2016-17 to 6.8%, 100 basis points lower than earlier projection of 7.8%. "This constitutes a mere 12% of the black economy, leaving 88% of black money to remain in the system. We now expect gross fixed capital formation for this year to grow at 2%, down 306 bps from our earlier projection," the agency said. Therefore, we expect private final consumption expenditure to grow at 7.5% this year, 89 bps lower than our earlier projection," it said.

Source: dna December 02, 2016 13:22 UTC