Indian goods are expensive. What will India export to China? I think India will be compelled to have free gun laws – at least to allow Indian gun traders to export (smuggle) guns into China a huge potential market. Now how will “black” money by selling guns to China flow into cashless white money of Modi?

Aphertheid does not pay even for currency!!

It will only become sustainable when government stops all its meddling in the economy. Other factors must change, as I said above. Cash crunch can not wreck production. As I said in my article, long enough cash crunch and price of consumer and producer goods will come down. Economy will adjust. Hyperinflation will result only if RBI prints endless amount of currency notes, as it is now going to do (some additional 1 lakh crore new rupee note to be printed). Inflation is increase in the supply of money and credit.

I gave answer of import tariff above. It has to go with other interventions. India has high inflation because RBI keeps printing rupees at some annual average of 17% rate. This has to stop. No more printing of new currency notes. Just freeze the money stock where it is right now.

In wake of import tariff imposed by India on various commodities – India has become a high cost inefficient economy crushing production. Is then black market /smuggled finished goods imports rising causing cash crunch? Will it not cause run on the rupee, causing hyperinflation.

Even when deflation was the trend around the world India had high inflation.