One year of demonetisation: Strongest drivers of economy were the worst hit

Consumption and services, the strongest drivers of pre-demonetisation growth, weakened significantly after December 2016, as reflected in the steady de-growth of consumer durables until recently

The government’s move to demonetise high-value currency, announced on November 8, 2016, was meant to root out unaccounted wealth, stem terror financing and curb counterfeiting. However, it has been argued that the objectives achieved were very little when compared to the disruption witnessed by the economy in the aftermath of demonetisation. Rupa Rege Nitsure analyses the impact of the move in the one year since its implementation of the move.

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This piece on demonetisation impact is likely to be criticised as the logical fallacy – Post Hoc Ergo Propter Hoc, which means “after this, therefore because of this”. This is