An obvious but little noted reason for the demonetisation are the coming elections in Uttar Pradesh, Punjab, Gujarat and Goa, in all of which the BJP and its allies face challenges. Can they be made to print at this accelerated rate to make China Wholesale Portable Hammock Manufactures up the shortfall or will they prove inadequate? Is it just a matter of bad planning and execution or is the scheme itself flawed?In no other country at any time has an overnight change of the currency even been attempted.25 trillion in capital infusion to help balance the huge Rs 6 trillion in bad loans, most of which is to the 10 largest borrowers.
It would have been simpler for banks to check all high-denomination notes presented to them and weed out the forged ones.The stated reasons for withdrawing Rs 500 and Rs 1,000 notes from circulation were either farcical or only partly true.It is difficult to tell whether Prime Minister Narendra Modi anticipated the chaos he would unleash by withdrawing currency notes worth over four-fifths in value from circulation last week. Mahindra, Ford and Honda saw sales drop in November.The surveyed companies reported higher demand from domestic as well as external clients, but indicated that growth was hampered by the money crisis, the survey said.4 in October. While many companies, surveyed for the monthly PMI scorecard, commented that further disruption is expected in the near-term, the demonetisation of the rupee is anticipated to ignite growth in the long-run as unregulated companies will leave the market, Ms Lima added.
Any figure above 50 indicates expansion, while a score below this level means contraction in factory output.Some analysts said that a part of the reason for double digit growth in auto sales may also be due to past waiting period of some popular car models and one will have to wait for one more month to see if the growth slows down. "PMI data for November showed that the sudden withdrawal of high-value banknotes in India caused problems for manufacturers, as cash shortages hampered growth of new work, buying activity and production," said Pollyanna De Lima, economist at IHS Markit and author of the report.