Prime Minister Narendra Modi recently moved ahead to demonetize high-value currencies in November 2016 in a calculated approach to eradicate black money from the country. INR500 and INR1,000 notes became invalid – these account for 86% of currency in circulation.

Amidst the immediate effect on consumption, sectors incurring major setbacks Include real estate, construction, jewelry, high-end retail, travel and tourism.

However, the long-term economic benefits include Higher tax revenues that will create a better business environment with higher transparency and minimized corruption. Banks will see large inflows. Inflation may trend lower leading to drop in interest rates.