Modi's shock currency move seen hitting Indian economy hard

Mumbai

PRIME Minister Narendra Modi's shock decision to scrap most of India's currency was hailed by some as a masterstroke against endemic corruption, but signs are emerging that it may hit the economy hard.

The sweeping overnight abolition of all high-value notes was supposed to bring billions in so-called "black", or undeclared, money back into the formal system. But experts are warning the ensuing cash crunch could have a dramatic impact on growth just as the economy was beginning to take flight.