On November 8, 2016, India’s government did something that no other government had attempted before at the same scale: It decided to remove 86% of the country’s currency notes by value from circulation. Over the months that followed, more than 1 billion people participated in a “reboot” of the country’s financial and monetary system.
How India Is Moving Toward a Digital-First Economy
On November 8, 2016, India’s government did something no other government had attempted before at the same scale: It decided to remove 86% of the country’s currency notes by value from circulation. Over the months that followed, more than 1 billion people participated in a “reboot” of the country’s financial and monetary system. An active debate has since ensued as to how the transition unfolded. Some have seen calamity for the economy, while others, like us, see something quite different: a threshold moment in India’s digital transformation. Demonetization isn’t the only high-profile economic act India’s government has undertaken recently. It has also implemented what was arguably the largest-scale tax reform ever implemented at a single time: the replacement of a complex web of 17 different taxes with a single Goods and Services Tax. India’s digital infrastructure is coming to life, with a combination of policy and technological innovation having played an important role. The country is moving rapidly toward a digital-first economy.