Let me clarify. I personally stand to benefit tremendously from this drive against black money. Although the industry I am in, hardware, is mostly "white", there is still significant evasion. This means that our competitors do not have pay income tax on their margins, like we do. This encourages them to lower prices - they take home the same profit as us even if they reduce margins by 33%.
However, nothing we are seeing right now will reduce the long term evasion of income tax. Folks will continue to under invoice imports, thus paying significantly lower import duties than us for the same components. They will also evade excise tax by creating shell companies that "manufacture" up to ₹1.5 crores worth of goods every year, while being exempt from excise. But most significantly, they will continue to show phantom employees on their books, who are all paid in cash at the end of each month. Now these employees will be paid in ₹2,000 notes. Nothing else will change.
However, nothing we are seeing right now will reduce the long term evasion of income tax. Folks will continue to under invoice imports, thus paying significantly lower import duties than us for the same components. They will also evade excise tax by creating shell companies that "manufacture" up to ₹1.5 crores worth of goods every year, while being exempt from excise. But most significantly, they will continue to show phantom employees on their books, who are all paid in cash at the end of each month. Now these employees will be paid in ₹2,000 notes. Nothing else will change.