India Prime Minister, Narendra Modi suddenly announced the abolition of the 500 and 1000 denomination rupees on Nov.8, replaced with a new version of the 500 denomination of rupees and issued 2000 rupees, in order to combat tax evasion and currency fraud.

Demand for polyvinyl chloride has been affected by the cash crunch, especially in the agricultural sector, which represents 74% of the total market demand in India. The source said, "the agricultural sector (transaction) is mainly based on cash because it is tax exempt.
Banks allowed exchange 10000-24000 rupees a week, which is not enough for the basic necessities, let alone business needs." "(PVC) normal market prices are around $1010/ton CFR in India, but even $950/ton for sale, and no one is willing to buy, because there is no money," a trader said that he expected cash flow will be released in Jan., 2017.