4 According to a Bloomberg survey of economists, expansion has probably accelerated to 7.25 percent to arrest negative spillovers from the shock.4 per cent from 7.5 per cent, while analysts are cutting down the growth forecast to 7."Attention has shifted to the impact of the demonetization initiative on the real economy," Radhika Rao, an economist at DBS Bank Ltd. Growth in October-December could dip below 6 percent, she said."Modi chainssaw chain may need until May to replace the 23 billion bank notes hes sucked out, say some estimates.According to Citigroup economists Sam*** Chakraborty and Anurag Jha, "In an uncertain economic environment since the demonetization exercise, the December monetary policy has to focus on a prudent risk management approach rather than a simple growth-inflation trade-off. in New Delhi, attention will shift to a purchasing managers index on Thursday, which will give first hand assessment of the impact on manufacturing.7 per cent this year.

Thomas Rookmaaker, director in Fitch Ratingss Asia-Pacific Sovereigns Group said that "Macroeconomic effects of the cash crunch include a temporary delay of consumption and investment, disrupted supply chains, farmers being unable to buy inputs, and some loss in productivity due to time lost to deal with cash issues.m. But Morgan Stanleys Chetan Ahya says that about 98 per cent of cash required for transactions will be in the system by mid-December.The biggest concern though is how soon the Indian economy will be able to rebound from Modi’s measure.Central Bank ReviewFollowing Wednesdays GDP data report presentation, which is scheduled to take place at 5:30 p. The Reserve Bank of India (RBI) will be reviewing interest rates on December 7.The Gross Domestic Product (GDP) report, which will come out on Wednesday will highlight the amount of loss which has taken place due to the currency demonetisation of November 8.According to the median of 15 estimates in a Bloomberg survey conducted after Modi announced currency demonetisation, Indias GDP will grow at 7. in Singapore, wrote in a report on Monday. Compilation of a private index by BSE Ltd. and the Centre for Monitoring Indian Economy showed a sharp surge in urban unemployment this month.

This means that consumption, which accounts for 60 per cent of GDP, will recover from the April-June quarter though private investment will take time to improve.".According to reports from Citigroup Inc, Reserve Bank of India Governor Urjit Patel will probably reduce the benchmark repurchase rate to 6 percent from 6. A projected slowdown has certainly put the world’s fastest growing economy at risk.