“Nations are guided only by their own interests and have no obligation to other countries which did not conform to those interests.” ― Indira Gandhi
In his endeavour to curb financial terrorism through Fake Indian Currency Notes (FICN), the circulation of black money in the economy and end corruptions, Hon’ble Prime Minister Shri Narendra Modi, a true visionary of our times, on 8th November 2016, at around 8 PM, took a decision to declare demonetization of currency notes of Rs. 500 and 1000 denominations effective immediately from 00:00 AM, 9th November, 2016.
Some have criticized the move calling it too bold and too sudden while others have welcomed it with open arms. Irrespective of the immediate responses, this measure, in the long run, would definitely prove effective in curbing the negative impacts that black money has created in our economy, their circulation, and printing of FICN. The question, however, remains – what would be its implications now, at this very moment? And not just national implications but global ones.
On Wednesday, the stock market opened with the Sensex dropping a massive 1600 points. Let’s not forget that Indian market has a huge role to play in the global stock market. One might say that UK’s Brexit has caused the market to crash or that USA’s Presidential Elections has caused the market to sway considerably, but India’s sudden and bold move has only fuelled the situation. However, by the end of the day the market has revived itself by 1350 points as soon as Mr. Donald Trump was declared the 45th President of the United States later on Wednesday. This changes our perspectives towards the outcome of the demonetisation of Rs. 500 and Rs. 1000 notes.
One may have noticed the coincidence in the time duration between Modi Ji’s step and Trump’s victory. One move dunked the market and the subsequent move elevated it. With UK’s weak economic condition at this moment, India and USA are the big players with the capability to manipulate the global market in one move. And current news and media revelations show that there has been an anticipation of both incidents since the last few months. On an immediate political perspective Mr. Trump gets repainted in new victorious colours with him swooping in and elevating a dropping Sensex, thus, saving the day! A simple and elegant political perspective! However let us look at the bigger picture here – the socio-economic perspective.
We have known for some time now that Mr. Trump dreamt of an immigrant-free America where Americans would get jobs in their country and also there wouldn’t be outsourcing of jobs to India and other countries. And we have also known that PM Modi dreamt of rescuing India from the throes of a brain-drain. Now this move of demonetisation has affected the economy in such a way that it will lead to the choking of NRIs living in the US and a considerate number of them will be forced to return to their country. What does an NRI do with his / her Rs. 500 and Rs. 1000 notes? There are directions by the government to deposit them in an NRO account but many NRIs have only NRE accounts. Moreover, according to Jose K. Matthew, head-retail business, Federal Bank Ltd; an NRI cannot deposit cash in NRO account from a foreign country.  Further, an NRI cannot keep more than Rs. 25000 in currency. All these factors will have the NRIs living in the US and other countries stymied and the time period given to recover from it is way too short for many of them. And this is a win-win situation for both Modi and Trump and hopefully, for the respective countries.
Now these incidents may be completely coincidental or completely calculated and the above statements are only speculations, but it cannot be ignored that these incidents are supplementary to each other, both politically and socio-economically. Calculated or not, we hope that this move only helps India and Indians in the long run and we also hope that Modi Ji’s vision of a black money-free and corrupt-free India finally sees the light of the day.