breif idea about impact on demonetistion on india economy

1. ANALYSIS OF IMPACT OF
DEMONETISATION ON
INDIAN ECONOMY
*Vikki Sharma
**Deepa Ahuja

2. 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)

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

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

5. 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:

6. 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:

7. 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 .