Cash-to-GDP ratio could hit 14-15%, the highest since independence

This is assuming 10% contraction in India's nominal GDP; currency with public crossed Rs 26 trillion in mid September

Topics
GDP | UPI transactions | Indian Economy

Abhishek Waghmare  |  Pune 

As demonetisation of high-value currency notes completes four years, data shows India has increasingly become a predominantly cash economy once again, as currency with the public crossed Rs 26 trillion in the middle of September. With respect to the size of the economy, cash to GDP ratio will probably now be the highest ever since independence.

If we assume that India’s nominal gross domestic product contracts by 10 per cent this year, the currency with public would rise to about 15 per cent of GDP, a Business Standard calculation shows. On November 8, 2016, when Prime ...

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First Published: Tue, October 06 2020. 16:37 IST
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