Hello there, I'm Ed Butler and welcome to Business Daily from the BBC.

Coming up, India's shock therapy continues.

This time, with an all-new tax system for the country.

How's it going?

I think the government decided that the way to move India away from a cash economy

is basically the same way as you would say take a child and teach them how to swim

by throwing them into the deep end of the pool.

Also on the tax theme, why appealing to Tax Dodgers' civic pride might persuade them

to cough up what they owe.

Telling people that nine out of ten people in your area with a debt like yours have already

paid their taxes on time, you're one of the few people who haven't, leads to quite a large

increase in tax payment.

All that to come in Business Daily from the BBC.

Yesterday we heard something of a damning admission from India's central bank.

In publishing new figures, it seems to have tacitly accepted the country's grueling

experiment with demonetisation last year, the crackdown on illegal cash, was a bit of an

abject failure. The key idea, remember, was to flush out all that dirty

money sloshing about in the economy by forcing people to swap their old notes for new ones.

But the latest figure shows that more than 99% of the banknotes did get handed into banks and

exchanged. So virtually none of them got destroyed by all the corrupt

money launderers as the government had been expecting. So most economists now conclude it was all a bit of a

waste of time and a very expensive one. The whole economy ground to a standstill, if you recall,

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