Jump in digital significantly slowed down growth of currency in circulation: SBI Group chief economic advisor
Nov 07, 2022
New Delhi [India], November 7 : State Bank of India Group Chief Economic Advisor Soumya Kanti Ghosh tweeted on Monday that the jump in digital has significantly slowed down the growth of currency in circulation (CIC).
Ghosh said as percentage of gross domestic product (GDP), CIC was now at 11.8 per cent, less than 12.1 per cent in FY16 and significantly lower than the nominal GDP growth. He also added that it is an absurdity to quote absolute numbers of currency in circulation (CIC) then and now.
In continuing with the thread, Ghosh also tweeted that the CIC to GDP ratio jumped in FY20 and F21 because of a lower base-- GDP contracted in FY21. He added data must be properly interpreted and absolute data of macro variable should not be brandished.
He tweeted on the social media site, "The CIC to GDP ratio jumped in FY20 and F21 because of a lower base / GDP contracted in FY21! Data must be properly interpreted and absolute data of macro variable should not be brandished. What about India's nominal GDP jumping by 1.7 times since FY16 then?"
He also thanked Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for the fact that currency in circulation was down in Diwali week for the first time in two decades.
He tweeted, "First time in 2 decades, currency in circulation (CIC) down in a strong Diwali week! CIC /GDP in FY23 is < FY13, CIC growth now < nominal GDP & share of digital in retail payments to touch 89% in FY27! This is digital India! Thank u @narendramodi @nsitharaman."
