The impact of the government's demonetization move is going to be clearly negative, Fitch Ratings said in a research note on Friday. "The impact on GDP growth is clearly going to be negative in the short run and depends to a large extent on how long the cash crunch is going to take," Thomas Rookmaaker, Director, Fitch Asia Pacific Sovereigns Group, said, in the note. The move sought to suck out nearly Rs 14 lakh crore from the system. While several research agencies have spoken about the likely negative impact that the government's move to remove 86% (in value) worth of currency may have, on the GDP, some say that it may even lose its fastest growing economy tag to China again. Rookmaaker, however said, "We still expect India’s GDP growth to trend higher than China’s in the medium term.

Source: dna November 25, 2016 08:19 UTC