Rajan and Arvind Subramanian were opposed. Krishnamurthy Subramanian (Rajan's former doctoral student from decades ago and now Executive Director at the IMF) supported it. My hunch is Krishnamurthy's support came because he worked closely with Luigi Zingales when they were at UChicago, and Zingales' economic philosophy strongly supported these kinds of shocks, plus it allowed Krishnamurthy to climb up the ladder.
Demonetization was brutal, but at least it pushed hundreds of millions from being unbanked to banked, thus making it easier to enforce taxation (while also converting black money into white money).
A similar shock will be needed for both India and Pakistan to revoke the Land Acquisition Act (the British holdover which has held back both countries), as well as to do a judicial overhaul.
This is a good overview of the economic reforms India needs to do to actually become a competitive economy - https://indiareforms.csis.org/
Demonetization was brutal, but at least it pushed hundreds of millions from being unbanked to banked, thus making it easier to enforce taxation (while also converting black money into white money).
A similar shock will be needed for both India and Pakistan to revoke the Land Acquisition Act (the British holdover which has held back both countries), as well as to do a judicial overhaul.
This is a good overview of the economic reforms India needs to do to actually become a competitive economy - https://indiareforms.csis.org/