Monetary reform in India and its consequences.

For several weeks now, news about currency reform in India has been a key event in news agencies. As a reminder, this concerns the withdrawal of the largest banknotes from circulation.


While in the early days the discussion focused on the reform itself, its goals, and objectives, more attention is now being paid to its results. What is happening with 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 their money at home.
Consumption of goods has fallen several times, and against this background, most analysts have reduced their forecasted economic growth rate from 7.6% to 6.8%.

However, this is far from the latest data, as the decline in production of goods and services continues. People are primarily cutting back on luxury goods and services, such as jewelry, household appliances, furniture, cars, restaurant visits, and taxi services.

Against this backdrop, the rupee, India's currency, has weakened, reaching a three-year low, though a rebound is already underway after the sharp decline.