Trends Of 2017

At the time of writing this, the stated objective of demonetisation has changed a few times (though not as often as the Reserve Bank’s notifications governing note exchange), from rooting out black money, to stamping out corruption, to drying up terrorist funding, to moving towards a cashless and transparent economy.

- Ashish Gupta

The only thing that’s certain is this: The impact of this will be felt well into 2017, even as a host of other global and domestic factors affect India’s economy.

In a little more than a month, consumption has tanked, manufacturing slowed, and the farm sector has struggled. Meanwhile, banks while flush with funds, are bleeding because they have few avenues for lending. And foreign investors are voting with their feet fearing lower corporate earnings, devalued currency, and the next surgical strike from Prime Minister Narendra Modi. It has also put a serious question mark on the early implementation of the goods and service tax.

With oil prices hardening, inflationary pressures building up, and U.S. President-elect Donald Trump threatening to implement all sorts of protectionist policies, India Inc. has a bumpy ride ahead.

AFTER DEMONETISATION

The intention behind it is still unclear, But its effects are sure being felt.

For his announcement on Nov. 8, making high denomination currency notes illegal, critics have called Prime Minister Narendra Modi everything from Tughlaq to Indira Gandhi. The party line is that this is the bravest, most far-sighted move of all time. History will judge, of course, but meanwhile, what does this mean to us in 2017?