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India's Economy

India's Economy: Emerging from the shadows

Mr Modi can claim some success. A new Goods and Services Tax (GST) introduced in July 2017 has boosted the number of firms registered to pay indirect taxes by 50%, to nearly 10m. That is more than can be said for “demonetisation”, which in November 2016 compelled Indians to trade or deposit most of their cash holdings at banks before their notes turned to worthless pieces of paper. It led to the abrupt withdrawal of 86% of all bank notes from circulation. Only now is currency in circulation, which some see as a proxy for informality, creeping up to previous levels even as the economy has grown.

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