India's GDP projected to slow to 6.6% due to demonetisation strains: IMF

India's growth is projected to slow to 6(point)6 per cent in 2016-17 fiscal due to the strains that have emerged in the economy as a result of temporary disruptions caused by demonetisation. 

In its annual report, however, the International Monetary Fund said demonetisation would have only short term impact on the economy and it would bounce



back to its expected growth of more than eight per cent in the next few years.The post-November 8, 2016 cash shortages and payment disruptions caused by the currency exchange initiative have undermined consumption and business activity, posing a new challenge to sustaining the growth momentum. India's economy grew at 7.6 per cent in 2015-16.