Reserve Bank Governor Urjit Patel said India’s economic growth will make a “sharp V” recovery following the recall of old 500 and 1,000 rupee notes.
Patel also made a strong case for continuing with globalisation even in the face of a potential shift to trade protectionism under US President Donald Trump as India has benefited from open trade.
“Almost everyone agrees that the impact is going to be a sharp ‘V’, that we would have a downgrade of growth for a short period of time,” he told CNBC-TV18 in an interview.
“However, the remonetisation has happened at a fast pace and that was part of the plan.”
RBI last week lowered economic growth for the current fiscal to 6.9 per cent from the previously projected 7.1 per cent, but saw it bouncing back in a big way to 7.4 per cent in 2017-18.
