One year of demonetisation: Currency purge trips growth pace

Exact impact on growth difficult to estimate in absence of data on informal sector

“To break the grip of corruption and black money, we have decided that the Rs 500 and Rs 1,000 currency notes currently in use will no longer be legal tender from midnight tonight, that is November 8, 2016.”

Prime Minister Narendra Modi — November 8, 2016

It was a decision with few parallels in India’s economic history. On November 8, 2016, in an address to the nation, Prime Minister Narendra Modi announced the withdrawal of legal tender status to Rs 500 and Rs 1,000 notes.

In a country that transacts primarily in cash, this decision, which withdrew 86 per