Gain must overtake pain

It takes time for impact of acute shortage of liquidity for small and medium trade to get captured

The editorial, “A hard fall” (June 1), objectively reflected the concern with the steep decline in gross domestic product (GDP) in Q4 of FY17. A granular look at the reasons for the fall in GDP shows that the data captured is right. 

A large cash-intensive Indian economy mostly went without cash for 60 to 90 days. During this period people were forced to carry out only basic and urgent transactions, accounting for 25 to 30 per cent of daily trade. Those with cash did not use it for circulation and abstained from avoidable transactions. Hoarding lower denomination currency was the norm