Political Benefits Of Demonetization

Posted by Astha Khandelwal
January 4, 2017

Demonetisation, a stout move that stunned the whole nation when our Prime Minister Narendra Modi terminated the currency notes of ₹1000 and ₹500 notes as legal tender on November 8, 2016. The move can be considered a historical and brave decision that was taken for our nation with an aim to rein in black money and check the menace of counterfeit money, corruption and terrorism. Besides narrowing the gap between the rich and the poor, it will bring probity in politics.

The move is not only economically and socially salutary for our national interests but will also the current government in power, politically. The decision has enhanced the Prime Minister’s image of an apprehensible, strong leader who has the capability to take a bold decision to curb the nation’s Achilles’ heel, i.e. corruption.

Certainly, this move will result in the cash assets of political rivals being unclad. The possibility of the cash to be used for the forthcoming elections in Uttar Pradesh and four other states were high. Amidst these assembly polls, the Bharatiya Janata Party would be delineated as the ‘knights in shining armour’ and attract more votes at a higher and positive pace. However, the Union Finance Minister said in a recent interview that the move has no connection with the elections but the consequences are quite crystal clear.

Initially, the politicians considered it a political suicide to criticize the prime minister as corruption is a sensible genre for our nation’s development. But now, the whole opposition seems to have shaken their hands together against this move to criticize it under one or the other pretence.

The government is foresighted towards the ‘Digital India’ where people would have a lower power to make expenditure for purchasing luxurious goods. According to the IBN reports, ” in the last few days, the digital payments through credit cards, debit cards, internet banking, e-wallets and mobile apps like paytm have increased to about 300 per cent.” By this move, there is possibility of abatement in the real estate sector, making the housing affordable for poor and the middle class. If this happens, it may bring a big boom in the Indian economy and we may look upto a society which is less materialistic and more frugal respectively. Jayashree kurup, head of Magicbricks, believes that by eradicating the black money, the goods would become cheaper thus cutting off the inflation from our economy. We would earn a greater respect in the International markets as well.

Conclusively, by this great move, people would not be able to accumulate fake money anymore by any wrong means, therefore, paramounting our nation towards the condemning of corruption. Simultaneously, this may fill the rifts between the classes as well. However, people would face hardships for a couple of months but this inconvenience is short term while the boons are for longer term.