Shooting in the foot
The government is living under an illusion. Demonetisation alone will not eliminate ‘shadow economy’. The government should have taken into account the consequences of such a move. At a time when we are competing with China, any step that can hurt the overall momentum of the economy should have been analysed. The recent cash crisis might lead to a delay in the crop season or less yields as many farmers might not be able to buy seeds at the right time, which might upset the whole cycle leading to the escalation of prices and shortage of produce. One can just keep one’s fingers crossed that the initial economic slowdown will pick up in some months. Looks like the government shot itself in the foot!