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Economy and Business

Demonetisation: The necessary evil? In simple terms, it is the withdrawal of a particular form of currency from circulation. In effect, however, it has shaken the current Indian economy and the population. Looking at the growth and size of the parallel economy, the high number of non-taxpayers and amount of black money being siphoned off, this shock therapy was the need of the hour.

Demonetisation: The necessary evil? In simple terms, it is the withdrawal of a particular form of currency from circulation. In effect, however, it has shaken the current Indian economy and the population. Looking at the growth and size of the parallel economy, the high number of non-taxpayers and amount of black money being siphoned off, this shock therapy was the need of the hour.

 
The ongoing squabble among Kerala’s politicians, on what they described as impending breakdown of the State's cooperative sector, owing to demonetisation, is meant only to cloud some stark realities relating to another so-far undisclosed scam . The points they put forth in this regard are nothing, but arguments predicated on, no worthy premises.  
 
This is the season for quoting, and misquoting, John Maynard Keynes. “When the facts change, I change my mind. What do you do, sir?” This statement is attributed to Keynes, though there is no actual evidence Keynes ever said, or wrote, this. However, both Paul Samuelson and Joan Robinson have attributed this to Keynes. Statements have also been misattributed to Sherlock Holmes too.   
 
In the fable, the emperor wants a robe so fine that the royal tailor stitches him a garment that is not made from any cloth. The courtiers all rush to praise the non-existent royal robe as being of the finest cloth with the best weave. The emperor proudly parades in public until a little boy exclaims: “The emperor has no clothes.”  
 
The Supreme Court-backed grade system to tackle air pollution emergencies in the capital has come as a big relief to the people, especially the children. In what will come as a big relief to many who have been battling the sever onslaught of worsening pollution levels in the National Capital Region (NCR), the Union Government has come up with a new graded responsibility action plan which proposes to have in place,  a pollution notification model.  
 
The demonetization of Rs 500/1,000 currency notes since November 8 has led to a rapid inflow of deposits in banks. Brought in to fight black market money and counterfeits, the amount in circulation in these notes was estimated at around Rs 14 trillion, i.e.  about 86% of the total. Citizens were asked to deposit them in their banks, leading to the deposit surge. The Hindu, a leading daily, said ~Rs 8.5 trillion had been deposited by end November and estimated it to reach  between Rs 10-11 trillion by early-December.  
 
Let us first look at some statistics. Last month on November 8, Prime Minister Narendra Modi announced demonetisation of  Rs500 and 1,000 notes. By just one stroke, the country changed. Revenue of municipal corporations of five major cosmopolitan towns made quantum jump in the month of November 2016, compared to revenue of 2015.  
 

 

The recent announcement of demonetisation by the Modi Government has no doubt started a revolution of clean-up in the country. But since it has come at such a crucial time for the farmers, it is likely to affect them more than anyone else.

 

All strong medicines have some side effects. But we take them to get another lease of life. That’s what medicines are for. And so is demonetisation — as the midnight ban on 86 per cent of the total value of currency value is loosely termed. It is more about forcing a change in business, politics and even personal habits, than merely wiping out black money and fake currency accrued over the years.

 

These calls reached a crescendo in Modi’s monthly radio address, where he asked citizens to take a pledge to be part of a cashless society. But do the preconditions for a successful transition to digital banking exist?

 


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Review
 
 
 
 
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Every year during the budget, many defence and strategic experts start clamouring for a higher budgetary allocation for the defence sector and this year was no different. The allocation of Rs 2.74 lakh crore (excluding defence pensions) is being perceived as “too less”. Every year during the budget, many defence and
 
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India remians the inflexible bête-noir for Pakistan, yet there are few books by Indian authors that have sought to interpret the prodigal neighbour in a holistic, informed and empathetic manner.

 
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The line that Mortimer Durand drew across a small map in 1893 has bled the Pashtun heart ever since. More than a century later both sides of that line remain restless. But the mystery behind what actually happened on 12 November 1893 has never ...

 
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