Cash ban, GST to cool GDP growth to 4-year low at 6.7%, shows poll

India’s economy will likely grow at its slowest pace in four years this financial year, a Reuters poll showed, as a currency ban and the new goods and services tax (GST) have disrupted business activity and dampened consumer demand. Asia’s third-largest economy will grow at 6.7 per cent in the financial year ending March 2018, the slowest since the new methodology of measuring gross domestic product (GDP) was introduced in the 2014-15 financial year, according to the latest poll of 30 economists. The poll was taken on October 12-24, closing just before India announced a $32.43 billion plan to recapitalise state banks, a bid to tackle a major drag on the economy. While the latest poll’s number for this year matches the International Monetary Fund’s toned-down forecast – that was 7.2 per cent earlier – it is a sharp decline from 7.3 per cent the July Reuters poll showed.