Demonetization-Impact of Startling Alteration of Indian Currency (original) (raw)

Impact of Demonetization on the Various Sectors of Indian Economy

International Journal of Engineering and Management Research, 2020

Demonetisation is an act of cancelling the legal tender status of a currency unit. It is a process when the government pulled out a unit of currency from the total circulation of the economy. The concept of demonetisation is not new, at first French used demonetisation then after most of the countries has adopted demonetisation to clean up the economy from corruption and inflation. India has adopted demonetisation three times: At first in January 1946 when RBI demonetised Rs. 1000 and Rs. 10000 currency notes. and again in 1978 by Moraji Desai of Rs. 1000, 5000, 10000 banknotes were demonetised and both demonetisation were held to eradicate black money. But the term Demonetisation became familiar on 8 November 2016 when P.M. Mr Narendra Damodar Das Modi announced Rs.500 and Rs.1000 currency notes will be no longer as legal tender status from the past midnight to unearth the corruption, black money and terror funding. Therefore this research paper is an attempt to throw the light on...

Impact of Demonetisation on Indian Economy: A Critical Study

Withdrawing units of money from circulation is demonetisation; units of money are denied the status of legal tender. Demonetisation is defined as a process by which currency units will not remain legal tender. The currency notes will not be taken as valid currency. Demonetisation is a step taken by the government where currency units are ceased of its status as legal tender. Demonetisation is a basic condition to change national currency. In other words, demonetisation can be said a change of currency where new units of currency replace the old one. It may involve the introduction of new notes or coins of the same denomination or completely new denomination. The currency has been demonetised thrice in India. The first demonetisation was on 12th January 1946 (Saturday), second on 16th January 1978 (Monday) and the third was on 8th November 2016 (Tuesday). The study attempts to understand meaning and reasons of demonetisation, the sector-wise impact of demonetisation. This study also gives an insight into the positive and negative impact of demonetisation on Indian economy. This study is of descriptive nature so all the required and relevant data have been taken up from various journals, magazines for published papers and websites. Books have also been referred for theoretical information on the topic as required.

Demonetisation and its impact on Indian economy

INROADS- An International Journal of Jaipur National University, 2017

Prime minister Narender Modi, On November 8, 2016, in an unexpected late-evening message on television announced the cabinet`s decision to remove Rs. 1000 and Rs. 500 notes from circulation, making them unacceptable for most transactions from that midnight. The purpose of this decision he said, was to "fight against corruption, black money, fake notes and terrorism." The move has dominated in all the media irrespective of whether it is print media or electronic media or social media. Several reports have emerged of the pain caused by it, especially to the large population that carries out its day-today transactions in cash. The demonetisation has also led to a debate among intellectuals on its effectiveness in fulfilling the objectives of government. Economists across the world have divided on this issues, some support the move while other oppose the move. Prof.Arun Kumar, an author of 'Black Money In India' (1999) said that it will demobilise the stock of black wealth or a part of it, but it will not stop the flow. Amartya Sen called it the dictatorial act of the government whereas Prof.JagdishBagauti said this move will benefit the economy in the long run. No one can deny the fact that India is a cash driven economy having 1.30 billion large papulation. The ratio of currency to GDP in India (12.2 per cent) is higher than countries like Russia (11.9 per cent), Brazil (4.1 per cent), and Mexico (5.7 per cent). Thus it reflect that India is still largely a cash-driven economy. Not only this Indian cities are full of bank branches, but those living in rural areas is facing very much difficulties in exchanging the old notes of Rs 500 and Rs. 1000, because Only 27 percent of Indian villages have a bank within 5km. Thus this move is likely to cause a few problems in economy in the short term, but in coming medium and long term this is going to be the big-bang decision for the health of the economy. It is expected that in coming future inflation and interest rate is going down, big boost to the movement of cashless economy, hammering on black money and counterfeiting notes, growth of formal economy, boost to the fiscal health of the government etc. This paper explain the impact of demonetisation on Indian economy on the basis of economic theories and past research.

Impact of Demonetization on the Indian Economy

Turkish Journal of Computer and Mathematics Education, 2018

Demonetization is the procedure for eliminating a monetary unit's legal tender status. In an effort to combat black money, corruption, and counterfeit money, the Indian government executed demonetization by banning the 500 and 1,000-rupee notes in November 2016. The decision provoked mixed responses, with some applauding the government's audacity and others criticizing it for seriously disrupting the economy. The impacts of demonetization on the Indian economy, including their implications on GDP, inflation, employment, and other economic indices, are thoroughly looked at in this paper. Demonetization impacted the Indian economy in the near term, the research finds, but its long-term repercussions are yet unknown but they can be assumed. (Veerakumar, 2017) This study uses data from 2015 to 2017 to provide a longitudinal analysis of the effects of demonetization on the Indian economy. Statistical techniques including regression analysis, t-tests, and time-series breakdown are used in the analysis. This paper will also discuss reviews of different individuals on demonetization as well as the people who were arrested during this time period.

Impact of Demonetisation on the Indian Economy: A Critical Study

International Journal of Research and Analytical Reviews, 2019

‘Demonetisation was a good idea but had bad results’- this was the reaction of the Indian public with regards to demonetisation that was implemented in India in November 2016. The NDA Government implemented demonetisation with the objective to attack the evils like black money, corruption and extremism. The public of India welcomed demonetisation with open hearts though many hardships fell on the citizens which made it difficult to even cope with the daily activities. The GDP of the Nation fell instantly affecting the economy as a whole. The cash intensive nature of the Indian economy was hit badly experiencing a forty five year high unemployment rate, bringing the nation to a stand-still. The position of black money was hit initially but the fake notes of the new 2000 rupee currency again brought back the situation to square one. The paper highlights the impact of demonetisation on the Indian economy along with the impact on black money and unemployment. The primary data was collected to better understand and know the real picture with regards to status of black money and unemployment. The analysis of the impact of demonetisation becomes clear as a time frame of year and a half have passed from the time of its implementation, to learn from the same and formulate more effective policies to solve the problem of black money, corruption and extremism for a long duration.

Impact of Demonetization on Indian Economy

Abstract The Indian government's stated objective behind the 2016 demonetization policy are as follows; first, to make India corruption free, second, to curb black money, third, to control inflation, fourth, to stop terror financing, fifth, to make the people pay income tax and finally, to make a cashless society and create Digital India. The demonetization policy is seen as a financial reform in the country but this decision is fraught with its own merits and demerits. This paper has made an attempt in analyzing the impact of demonetization on various sectors and the economy as a whole.

A review on impact of demonetization on Indian Economy

Objectives:To identify the possible impact of recent Demonetisation technique in India by reviewing the existing literature and examining the tax GDP ratio and GDP growth rate and sector wise growth rate before and after demonetisation. Methods: Since present study is basically a review of existing literature so it is fully based on secondary data. Secondary information is collected from various journals and economic survey of India various issue. Findings: By reviewing the earlier literature it is observed that from theoretical point of view Demonetisation is not encouraging. The study also found that though the tax GDP ratio has been increased after Demonetisation but GDP growth rate along with growth rate of different sector have fall immediately after Demonetisation. Future improvements: However due to lack of data, long run impact like impact on recovering black money has not estimated in the present study. So future study can be made in this regards.

Impact of Demonetization on Indian Economy: A Review

2015

Demonetization had been done with the positive approach to eradicate the black money from the economy but it does not go the way fully like it has been planned. Various steps need to be taken to eradicate stock of black money only one step is not enough for this purpose. But if we look on the other hand, demonetization is also the need of hour. Also there are also various steps regarding all these which government need to take in these regards. There are various effects of demonetization on Indian economy and its various sectors. There are many sectors whose trend went upward movement and there are various whose trend shows downward movement. Moreover these effects continue to go on in various directions with the time and the trend in economic activities.

An Overview on Impact of Demonetization in the Current Scenario (2016-17) of Indian Economy

The argument posited in favour of demonetization, therefore it is imperative to evaluate the short run and medium-term impacts that such a shock is expected to have on the economy. This paper elucidates the impact of such a move on the availability of credit, spending, and level of activity and government finances. The Government of India announced that the Rs 500 and Rs. 1000 denominated currency notes will cease to be legal tender. The move was targeted towards tackling black money, corruption and terrorism. Declaration of 86 percent of currency notes as illegal tender in just a blink of time on eve of 8th November 2016 mandated the creation of immediate interruption in daily lives. The chaos was created in every strata of the society whether upper, middle or lower. This paper aimed at reviewing the general implications of demonetization on the people of India.

Demonetization and Its Impact on Common People and the Economy

Global journal for research analysis, 2018

Demonetization of currency is a radical monetary step in which a currency units status as a legal tender is declared invalid. In November 2016, the government of India has taken a bold step to demonetize Rs. 500 and Rs. 1000 currency notes which are the two biggest denominated notes accounted for nearly 80 percent of the currency supply. In India demonetization move has been taken to unearth black money, to trace fake currency, to transform Indian economy into cashless economy, to control terror funding and so on. This decision taken by the government is for welfare of the nation, but so many questions comes in mind that, what will be the short term and long term impact of this decision on Indian economy? What is the impact of this decision on common people? Would the Indian economy be prosperous or would be poor and so on. Against this backdrop the present study is being proposed with following objectives – To study the impact of demonetization on common people. To study the positi...