Branch² Intelligence

Prime Minister Narendra Modi's administration has implemented several key economic policies since 2014, including demonetization and the introduction of the Goods and Services Tax (GST).

IN · 2026-09-17

India — direction and magnitude withheld

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Key takeaway

Demonetization and GST overhauled India's cash and tax systems, forcing SMEs to formalize operations.

  1. Step 1 · The triggerDemonetization and GST overhaul India's cash and tax systems, disrupting informal business operations.
  2. Step 2 · Knock-onThe Reserve Bank of India manages liquidity shocks and monetary transmission, affecting SME working capital and credit access.
  3. Step 3 · Reaches youIndian SMEs formalize operations, shifting to digital payments and GST compliance, which changes cost structures and creditworthiness.

The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.

Source: LiveMint — Economy

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