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Apropos of the news story “India’s demonetisation could impact Nepal” (THT, January 12, Page 10), for the last couple of months India’s demonetisation news has occupied the media headlines in the Indian sub-continent, and it has also drawn attention of the world.

 

When a toxic haze descended on Delhi even before the sparkle of Diwali’s fireworks faded last November, it sparked off a flurry of long-delayed government activity. Daily meetings were convened, power stations shut down and road sweeping ordered. The smog lifted after a week, and with it, the semblance of official concern vanished about a chronic problem that is not only killing thousands but also shaving crores off India’s economy.

 

Without conditionality, it would give people more control over their lives

 
Despite the spectre of a Trump presidency on the world economy, tapping emerging markets can mean big bucks for global business.
 

The immediate consequences of the demonetisation of 500 and 1,000 rupee notes and their replacement by new 500 and 2,000 rupee versions have been widely discussed. This change has less obvious intermediate and long term consequences. Policy interventions set off many chain reactions which are difficult to forecast but here is an attempt to do that.

 

Three hundred and twenty billion dollars. That is the amount by which China’s gargantuan foreign exchange reserves declined by in 2016, according to the latest data that has been made available by the People’s Bank of China. 

 

The deadline for turning in old currency notes fell on December 30, 2016. Only non-resident Indians and returning Indians (who were abroad during the period November 9 to December 30) can still make deposits of old notes, and only at the Reserve Bank of India. 

 
Long-term investments in social sector are essential for growth, political stability.  
 

Far from curbing black money and corruption, demonetisation has disrupted the economy.

 

That India’s economic momentum has slowed down is now beyond doubt. Advance GDP estimates and gross value added (GVA) for the current fiscal year from the Central Statistics Office clearly reveal the extent of the slowdown.

 


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