The Modi government's surgical strike on black money leaves Indians high and dry. But will this demonetisation wipe out the scourge of illicit wealth?
Two earth-shaking events happened in two large democracies of the world - the USA and India - last month. The nature and magnitude of these events can change the economies of the two countries and, in turn, write a new chapter in the global economy. November 8, 2016 will be marked as a red-letter day by their historians. On this day, the US was counting votes, and India was counting notes.
The US citizens elected Donald Trump as their 45th president. Marking an end of the eight-year Barrack Obama rule, Mr Trump will take charge of the USA next year. Mr Trump, a successful businessman without any political background, is likely to introduce sweeping changes in the world's largest economy and could reshape global economy.
In India, on the same November night, Prime Minister Narendra Modi announced demonetisation of Rs 500 and Rs 1,000 currency notes. This radical decision can have far-reaching economic ramifications. Mr Modi's drastic action - described as his government's second surgical strike is aimed at fulfilling his election promises of removing black money and corruption and also striking at the roots of terrorism, financed by fake currency to a large extent.
The prime minister's action is considered to be a hasty step and rightly so. A surgical strike of this nature cannot happen with an advanced notice. A slightest hint of such a measure would have made the exercise completely ineffective and useless. The drastic measure has created untold hardships and misery for the common man. The worst hit are people in the unorganised sector, like daily wageearners, labourers and domestic helps.
هذه القصة مأخوذة من طبعة December 2016 من India Business Journal.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة December 2016 من India Business Journal.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Top Crisis
Short-term, consumer-centric measures have left the tomato, onion and potato farmers struggling to eke out a living.
Boon Or Bane?
With some adequate safeguards, the government's e-assessment scheme can be a win-win situation for both tax department and taxpayers.
Revisiting Development
Sustainable development is the way forward for India, which is in the midst of an economic downturn, ecological crises and stark human distress.
The Cabotage Debate
Relaxation of Cabotage rules has pitted foreign shipping lines against domestic shipping companies.
Catch-22
India finds itself in an unenviable position, as it weighs the pros and cons of joining RCEP.
Accept Mistakes Quickly
Anto Binish Kaspar is a firm believer in technology.
We Will Have 30 Franchisees By 2020
Naresh Sharma , CEO , Skora paints
The Revival Conundrum
Along with a patchwork of band-aids, a smart combination of monetary and fiscal measures can get the ailing economy back into the pink of health.
Mahatma Gandhi @150
The Mahatma firmly advocated that this world has enough for everyone's need but not greed. Gandhian economics, no wonder, cannot be more relevant today in times of erratic economic development, jobless growth and adverse climate changes.
Bitterness Lingers
A hike in subsidy does little to boost exports, thanks to a glut in the global market, and leaves sugar prices subdued in the domestic market.
