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Demonetization of high value Currency will bring “a behavioral change” in Economy and pain due to Cash Crunch will be a non-event by 2018

Pabrai added that Prime Minister Narendra Modi understands he may end up as the net loser after demonetisation and he did it for the good of the nation

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Thousand Rupee Note India. Wikimedia
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Mumbai, Dec 31, 2016: Demonetization of high value currency will bring “a behavioural change” in the economy and the pain due to cash crunch will be a non-event by 2018, said Mohnish Pabrai, Managing Partner at Pabrai Investment Funds and Dhandho Holdings.

“Indians will adapt to an economy with scarcity of cash and demonetisation will result in a behavioural change.

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“There will be a segment of the population that will realise that it is better to play within the system,” he said.

This would have huge positive impact in the long run, he said in an interview with BTVi.

“..Demonetisation is short term pain and long term gain. It is a very positive move for India. I think to some extent there are positive unintended consequences.

“I do not think the government fully realised …the degree to which we are going to go digital,” he said.

He said “the pain” due to cash crunch that people are going to feel in Q4 (fourth quarter) and perhaps rolling into early part of 2017 will be “a non-event by 2018 and beyond”.

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Pabrai said investors would be better off by not focusing on macro factors.

Pabrai added that Prime Minister Narendra Modi understands he may end up as the net loser after demonetisation and he did it for the good of the nation.

He also said that there would be a political impact and it might change people’s vote preference and he also felt that the shift to digital transaction enabled small businessmen to better handle finances.

Talking about investments in stock markets, he said low prices of equities were a cause to rejoice because net buyers of equities benefit from lower share prices and buyers should welcome recent changes in world economics.

“Indian blue chips in the long run will do really well,” he said.

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The key is to assess future business of the stock and take advantage of price fluctuations. The patience and analysis of companies is key to investing, he added.

“India has the odds very heavily in its favour to deliver much higher returns than the US markets can deliver,” Pabrai said. (IANS)

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Demonetisation Anniversary: BJP acts cheeky, releases new video showing Frustration of ‘Corrupt’ Politicians following Demonetisation

The one-minute video, which is now going viral on social media, has already been re-tweeted more than 2 thousand times since it was released on November 7, on the eve of demonetization move.

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Demonetisation Anniversary
Screen grab of the sarcastic video released by BJP to mark Demonetisation Anniversary. Twitter

New Delhi, November 8, 2017 : On November 8 2016, every Indian citizen sat glued to their TV screens as Narendra Modi was set to make a big announcement. Outcome? The Indian Prime Minster shocked the entire nation with the introduction of Demonetisation, a move that was to change the very foundation of the cash-dependent Indian economy.

The much-debated move by Modi garnered the attention of several well-versed economists from the country and abroad, alike. While some people willingly welcomed the move, there were others who stood in staunch criticism.

As the move completes its first year, the Bharatiya Janata Party (BJP) is set to observe November 8 as ‘anti-black money day’ to celebrate Demonetisation anniversary in the country.

On the eve of the Demonetisation anniversary, the BJP released a cheeky video claiming to depict how ‘corrupt’ politicians have been criticizing the move, as the nation won following demonetisation.

WATCH BJP’S TONGUE-IN-CHEEK VIDEO

In the video, the BJP attempted to take a dig at corrupt politicians, who have been criticizing PM Modi’s Demonetisation move.

In the video, a woman, playing the character of a frustrated, corrupt politician can be seen going on a rant over PM Modi’s note ban initiative, which was aimed to combat black money, corruption, fake currency and terrorism.

The video ends with a voice-over saying demonetisation has not only brought out this frustration of corrupt citizens, but also black-money, claiming that almost 99 per cent cash which was previously lying hidden with people has now entered the banking system.

The one-minute video, which is now going viral on social media, has already been re-tweeted more than 2 thousand times since it was released on November 7, on the eve of demonetization move.

Ahead of the Demonetisation anniversary, the last few days have witnessed several leaders present their opinions on PM Modi’s demonetization move.

Finance Minister Arun Jaitley called PM Modi’s note ban initiative a ‘watershed moment’ while Piyush Goyal, Minister of Railways believes the move has pushed India towards a more transparent economy.

However, the move is being criticized by ex-Prime Minister Manmohan Singh calling it ‘irresponsible’. The opposition maintains that PM Modi’s note ban initiative has caused reckless damage to the country and the Indian economy.

On Demonetisation anniversary, the BJP is set to observe November 8 as ‘anti-black money day’, while opposition leaders are set to observe the day as ‘black day’ in protest against the note ban initiative.