India Post Demonetisation
The abrupt demonetisation of Rs. 500 and Rs. 1000 currency notes by the Indian government last year was quite a bold move. However, it mostly affected those who were daily wage earners, solely relying on hard cash to meet their needs. Besides resulting in a sizeable decline in overall earnings and spending, the demonetisation drive proved to be a deadlier exercise for most states. Even a couple of months after the demonetisation, there is a significant decline in spending, affecting both the short and long-term growth of small and medium businesses. According to a research study by LocalCircles, a citizens’ engagement platform in India, a large number of people in the country are still experiencing the aftershocks of demonetisation in terms of lower earnings, which is adversely impacting their spending power, as well as their ability to save money. Will the Indian government take the responsibility of its adventurous, but flawed policy-making?