Modi Cash Shock Seen Tripping Up Accelerating India Economy

Rather than highlighting how far India’s economy has come under Prime Minister Narendra Modi’s pro-growth administration, Wednesday’s gross domestic product report will underscore just how much there is to lose from his shock clampdown on cash.

Expansion probably accelerated to 7.5 percent in July-September, according to the median of 25 estimates in a Bloomberg survey of economists. However, analysts are cutting forecasts for growth to 7.4 percent from 7.7 percent for the year through March as Modi’s Nov. 8 move to invalidate 86 percent of currency in circulation dents demand in an economy where 98 percent of consumer payments are in cash.