He noted that both measures would affect the informal sector and the small scale sector.
New Delhi: Former prime minister Manmohan Singh on Monday again hit out at the BJP government saying
that demonetisation and “hasty” implementation of GST will adversely impact the economic growth.
“Both demonetisation and the GST have had some impact (on GDP growth),” he told a business news
channel. He noted that both measures would affect the informal sector and the small scale sector.
“The sectors today are responsible for 40 per cent of GDP. Ninety per cent of India’s employment is in
the informal sector,” he said.
“The withdrawal of 86 per cent of currency plus also GST, because it has been put on practice in haste,
there are a lot of glitches which are now coming out. These are bound to affect the GDP growth
adversely,” added Dr Singh.
Dr Singh had called note ban a “monumental mismanagement”, “org-anised loot” and “legalis-ed plunder”
which would cause GDP growth to fall by two per cent.