ANALYSIS OF IMPACT OF DEMONETISATION ON INDIAN ECONOMY

*Vikki Sharma

**Deepa Ahuja

INTRODUCTION• Demonetization is the act of stripping a currency

 unit of its status as legal tender . Demonetization is necessary whenever there is a change of national currency. The old unit of currency must be retired and replaced with a new currency unit.

• Prime Minister Narendra Modi on Tuesday, 8 November 2016 announced demonetization of Rs.500 and Rs.1000 currency notes with effect from midnight, making these notes invalid in a major assault on black money, fake currency and corruption.

• Here are eight countries that tried demonetization before India... (Nigeria, Ghana, Pakistan, Zimbabwe, North Korea, Soviet Union, Australia, Myanmar)

OBJECTIVE

• The objective of present study is to analyze impact of demonetization on Indian Economy.

RESEARCH METHODOLOGY

• The study is descriptive in nature the study based on secondary data - different new papers, articles ,research journals .

IMPACT

• (1) Black money:• (2) Terror funding:• (3) Real estate may see significant

course correction:• (4) Political parties in crisis ahead of

polls:• (5) Moving towards digital payments:

IMPACT

• (6) Temporary chaos and confusion:• (7)Consumption will be hit:• (8)Welfare loss for the currency

using population:• (9) Loss of Growth momentum:• (10)Impact on counterfeit currency:

Conclusion• There is see a great impact of this move of the Central

government on Indian Society and Economy.The first and foremost impact was that people had lower expenditure power.There was no ostentatious expenditures on marriages and other ceremonies.With the fake money destroyed, Indian economy have seen reduced growth currently and the so far booming real estate sector is supposed to fall substantially .Corruption being down to a great extent as people and stopped the tendency of accumulating money using wrong means.To be positive side --Indian Currency will get respect at the international market. There will be a great check on the terror-related funding and therefore on terrorist activities.It has been observed that the public at large although with all inconveniences has supported this move as public is aware about its long term benefits .

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