Economists see pain, then gain for India after Modi's bank note shock

Mumbai

INDIA'S shock move on Tuesday to take larger bank notes out of circulation will hit Asia's third-largest economy in the short term, but pain will turn to longer-term gains including transparency, higher tax revenues and lower inflation, economists say.

The removal of 500 and 1,000-rupee bank notes to flush out money hidden from the taxman has led to confusion and anger among Indians, who cannot access cash from ATMs and…