DEMONETIZATION: ITS IMPACT ON INDIAN ECONOMY

Posted by Shirjeel Ahmad Siddiqui
April 16, 2018

As we all know that from the midnight of 8th November 2015 a ban was imposed on the currencies of Rs.500 and 1000 by our Prime Minister Narendra Modi. This step was taken in order to have control over black money, black marketing, illegal trade across the borders and many more such problems, as per the ruling government. However, it never proved to be real till now. Moreover new problems aroused during that phase, the struggle of common man in long queue of banks and ATM’s in order to return their money which was termed invalid all of a sudden, the money which was credited at that time was quite less to sustain the living and a limit was set to withdraw the cash which made the problem worse. The new currency of 2000 rupee was introduced sarcastically ATM’s were not calibrated for those type of notes. And it took complete three months to bring back life to normal.

This step led to a huge setback on Indian economy system, the trade sectors of different backgrounds have not been able to cope up yet, decline in GDP, inflation, and all the export and import business was highly affected and is suffering till now. A large number of employees from private companies were ousted, salaries were reduced and the poor sections of society were the biggest sufferers, no work was left with them and they and their families were forced to starve. A good number of people lost their lives in long queues of banks. When it comes to black money nothing has changed ——the step of demonetization taken to stop all this is a total failure as the most of the black money holders have their money in form of gold, properties , other investments or else is deposited in Swiss accounts.