It’s been almost a year since demonetisation was introduced in India, and the debate whether it was a success or a failure still goes on. In these exceedingly bipolar times, I would like to take a look at the areas where it has clicked, and vice-versa. Firstly, the negative side i.e. inconvenience to a major section of honest citizens for almost four months, more-than-expected cash reverting into the banking system, ingenious methods of tax evasion with collusion of bankers to avoid detection of black money, introduction of a new 2000 rupee note that continues to facilitate large cash transactions, and an adverse effect on the GDP. On a more positive side, there has been a jump in tax-payers’ base, increase in availability of data that could be used to penalize shell companies, a large push towards digital transactions, more and more idle cash entering the system and being put to use, reduced interest rates, and a stock market boom. The IT industry has largely gained because of the digital thrust and we should not have too much to complain about the demonetisation move.
The iPhone X, notwithstanding it’s high price, has emulated its own predecessors and the queues to procure it first have only grown longer. Another interesting piece of news is that even though the two largest e-commerce players in India achieved record sales during the just-finished festival season, their profitability is still suspect. The consumers are happy, sellers are happy and so are logistics service providers, government collects taxes – seems like a win-win situation for all on the face of it. Or is it not? Will it come to an end soon? These are some of the questions that only time can answer.