“It keeps us afloat …”: Shankar Sharma says that the parallel economy Shields India

The parallel economy of India often gets a bad reputation. But the veteran investor and founder of Gquant Investch Shankar Sharma says it’s time to look at him differently.

Speaking on a podcast with Rishi Sanghvi, Sharma said: “I love it. It’s fantastic.”

His reasoning? It acts like a stamp during turbulence.

“This keeps us afloat. This is how India does global economic crises better than others – because the parallel economy does not fall as much as the real economy,” said Sharma.

He explained that although the official economy could be affected during slowdowns, the wealth not recorded – in the form of gold, money or real estate – helps families absorb shocks.

“Let’s say that the white economy … People have gold that is not allowed, people have money that is not counted, people have real estate that are out of the books – which are far from the people of the people of a bank or the government. So, in case there is a calamity, and calamities occur-he said.

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“I know it seems heretical to say it, but it has helped us in the past and I think it will continue to help us in the future.”

On the question of whether the digitization made a breach in this parallel system, Sharma was clear: “No. I know that the notes in circulation are much higher than it was in 2016. So, in India, you cannot do without species. Forget that. It doesn’t work. There are many, many places where you still need money to contact you. ”