Opinion | Where has all the money gone from the system?
At the moment, it does look as if people are waiting. Waiting to Individual spends over a certain amount now need an identifier—PAN or Aadhaar
What’s happened to the Indian economy? From an aspiring 10% growth, we are struggling to do half of that. The mood is down. Consumers are not buying. Household savings are at a low. Corporates are not investing. Gold prices have fallen. Real estate is still comatose. Just the stock market has the steam to keep rising higher. Clearly, there is something deeper to this story—what’s going on with the Indian consumers, savers, investors and entrepreneurs? And why is the market up, when data on consumption, spending, confidence, jobs and growth shows only gloom. On one side, the reasons for this skid off the growth path are said to do with demonetization, a botched GST, the persistent bank NPA problems, the shadow banking mess and hardening of rules. The other argument looks at this being a result of an attempt to switch the Indian business model towards formalization. Whatever may be the reason for the skid, the result right now is a slump in the mood of the economic participants.