Skip to main content

Posts

Showing posts from December, 2016

The Sixth Index

Heard so much since last 30 days about demonetization. Right from the emotional videos to the acerbic interviews, from the blatant speeches to the new economic revelations. Unfortunately, the situation is such that everybody stands in polar positions. As the typical extremely judgemental Indians, as we are, either the people have lauded or they have criticized but not many seem to have a clearer rational view on what lies ahead. Well, to shed some light on the facts; let’s understand a few pointers. The size of India’s economy or the GDP is close to 2.2 trillion dollars or 150 lakh crore rupees . The parallel economy that is the black money economy is almost 20-30% of the country’s GDP ( as per a report by Ambit Capital research ). In fact, as per Ambit, the cost of black economy has recently gone very high & thus the black economy has shrunk from the levels of once 50-70% in 2014 (a report in The Hindu available at http://www.thehindu.com/news/national/black-economy