Currency reform in India and its consequences.

For several weeks now, news about currency reform in India has been one of the key events in news agencies; let us remind you that we are talking about the withdrawal of the largest banknotes from circulation.


If in the first days the very fact of the reform, its goals and objectives were discussed, now more attention is paid to the results. What is happening to the Indian economy now and what impact is this having on global markets?
As it turned out, the reform affected not only the shadow sector, but also the majority of ordinary citizens who preferred to keep money at home.
Consumption of goods fell several times, against the background of this, most analysts reduced the projected economic growth rate from 7.6% to 6.8%.

But this is not the latest data, since the decline in the production of goods and services continues, first of all, people refuse to purchase goods and services that fall into the category of luxury - jewelry, household appliances, furniture, cars, going to restaurants, services Taxi.

Against the background of this, the rupee itself, the monetary unit of India, weakened; its rate reached a three-year low, although after a sharp fall a rollback is already taking place.