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Demonetisation impact wearing off

The latest economic data for India suggest that the most acute impact from the government’s demonetisation measures has now passed. Both the manufacturing and services PMI readings for February came in above 50 for the first time since the demonetisation announcement. Meanwhile, vehicle sales have continued to recover after plummeting at the end of 2016. In addition, overall cash in circulation has risen by almost 50% since the start of 2017.

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