Demonetisation and the Delusion of GDP Growth

Whilst demonetisation (combined with other measures aimed at crunching the size of the black economy) will yield benefits in the long term, we highlight the fact that the move undeniably affected the gross domestic product growth rate adversely in the short term. Moreover, increased tax compliance and the advent of the Goods and Services Tax regime could make a host of informal sector businesses unviable in the future.