The United Nations has said that the demonetisation policy is not expected to have a long term impact on domestic demand in India, which is projected to clock a 7.9 per cent growth in fiscal 2018.
Commenting on the issue, Dawn Holland, Senior Economic Affairs Officer, Global Economic Monitoring Unit, Development Policy and Analysis Division in the UN Department of Economic and Social Affairs said, "We do not really see that the dynamics of India have shifted very much."
"Slower growth this year and faster growth next year is more a shift in the timing of expenditure which is largely related to the demonetisation policy that did have an impact slowing domestic demand in the short term but we do not see this as having a longer term impact," the official said.
"It is sort of a transitory effect on the economy as a whole. So (India) still remains one of the fastest growing countries in the world," Holland added.