Billionaire investor Jim Rogers once had high hopes for investments in India but in 2009 announced that he had given up on the country: https://www.lewrockwell.com/2009/05/jim-rogers/jim-rogers-on-india/ Then, in November India banned "big bills" in order to cope with corruption, big bills being the 500 and 1,000 rupee notes, being worth about $8 and $15 respectively. http://www.nytimes.com/2016/11/09/b...lls-for-now-n-bid-to-cut-corruption.html?_r=0 This is a more recent update: https://mishtalk.com/2016/12/07/india-confiscates-gold-even-jewelry-in-raids-on-hidden-money/ India's largest political party endorses socialism and other parties include a large Hindu party, a Muslim party, a Marxist communist party, and a Maoist communist party, which on the surface at least may seem to create an insoluble religious and political nightmare, and this may be the reason that the mainstream media seems to be ignoring problems in India. But India can also be viewed as an example of rampant Keynesianism run amuck, which may be another reason that the liberal mainstream media including Reuters seems to be completely silent on this subject. Both India and China have about one billion intelligent industrious people, but their economic policies are radically different.
It's a big mess, though I have friends in India who also seem to be ignoring it. It doesn't affect them much, so they claim it is all good. I had a transaction with an Indian company that took an extra month for payment to go through because of banking restrictions. Now, Venezuela has just declared that it will seize honoring the 100 Bolivar note in 9 days.
Probably the best way to revive markets in india is for the state to have a few audits of companies. it is christams time, so, people make huge orders, then pilfer the coffers for themselves, with nobody noticing. the cost to the state would be far less than the loss of taxed amounts, of course. Or, they might decide to, instead of taxing how much they sell, they can tax them for how much they buy? this would see the taxes go down per capita, and, then they pay their taxes upfront, with a tax rebate for all things not sold. this will require a few more staff to work out, but corruption will hit a snag or two.
Firstly, people in India would want the cheap smartphone. Or the latest iPhone with Indians? Very sorry.
India's economic growth slows, but it's hard to believe it was truly growing that fast in the first place. I'm wondering if per capita income was really increasing at around a 7% rate or just government spending, which is sometimes calculated as economic growth. Anyway, here's the story: http://money.cnn.com/2017/01/16/news/india/imf-world-economic-outlook-india-china/index.html
