We are likely to see a significant dip in economic activity till January or even till the end of the financial year because of this disruption
The images on television are troubling. Harassed people queuing for hours. An elderly man, obviously quite sick, crying helplessly. The hospital wouldn’t admit him for the required surgery nor would the chemist sell him the drugs he needed because his money had ceased to be legal tender. A lady crying, her husband had just died because no hospital would admit him. The treatment money she had had suddenly become worthless. Frustration is widespread, patience is running thin, and there are worrying reports about incidents of violence, fortunately still isolated. It is a challenging moment for the country. It is a pity that instead of empathizing with the people in the queues, some TV panellists are dismissing their plight or even provocatively asserting that all complainants must be black-money wallas or terrorist sympathizers. Let’s step back from emotion and dispassionately consider the consequences of the demonetization shock.