A Study on Demonetization and its effect on Indian Economy – Step towards Nation Building and inevitable transformation to Digital Economy

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  • Editor AJMS

Abstract

Today, the word Demonetization is well known to people of India. The announcement of Prime Minister Mr. Narendra Modi on November 8th that India’s two highest-denomination currency bills—1,000 rupees and 500 rupees—would immediately cease to be legal tender in most places. Holders have until the end of the year 2016 to deposit these bills into bank accounts. As replacements, the government has slowly rolled out a redesigned 500-rupee bill and a new 2,000-rupee bill. The long-term effects of India’s demonetization strategy remain unclear, largely because no other major economy has attempted such an experiment except during a crisis. But with growth slowing and job losses rising, the short-term prognosis appears grim. Instead of factory openings or large new investments, the images that tell India’s current economic story include snaking lines outside banks, distressed workers migrating back to their villages, and tax raids on jewellers and officials caught with hoards of allegedly illicit cash. From Jan 1, 2017 the scenario had changed. We find no queues in front of the banks and people are getting money to withdraw at the ATMs and banks. This researcher analysis the impact of demonetization on Indian economy and people of India with this article and draws conclusion based on the analysis

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Published

2021-10-16

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Articles