Dubbed as the “surgical strike against black money in India”, an announcement by the Indian government to demonetize (and effectively ban) the 500 and 1,000 Rupee notes as of November 9, took India by a great surprise, if not shock. This move is hailed by most as a positive step to counter unaccounted-for cash as well as counterfeit currency running through the economy, rendering the black money stored in these denominations unusable for any further transactions. However, this also puts the economy in a state of transition, which will impact several industries, at least until the process is completed.
While the government is trying to ensure that critical sectors such as healthcare are not impacted during the transition period, a lot will depend on how smoothly the transition happens. Banking sector also plays a crucial role to aide this transition, but it is believed that the most turbulent impact is likely to last only over a short term.