Reform programmes boost growth potential - Nick Price's EM view

In November, Narendra Modi's Indian government announced 500 and 1,000 rupee (broadly equivalent to £5 and £10) notes would cease to be legal tender by the end of the year. While this has caused some short-term chaos, particularly in India's thriving cash economy, it is further evidence of the government's determination to enact bold economic reform. Among other things, this policy is likely to offer long-term benefits to some of India's better-run banks as digital transaction volumes increase.  In addition to the longer-term positive effects emanating from its ongoing reform programm...