International Journal of Applied Research
Vol. 3, Issue 9, Part G (2017)
Impact of demonetization on Indian economy
Dr. G Ganesan and B Gajendranayagam
Countries across the globe watching India as a democratic country and is poised to become a leader of regions. In the global environment, India has multiple strengths of larger youth population, growing middle class people, increasing literacy level and improving technical knowledge among the work force which would address favorably any proactive change in the present setup. Moreover, demonetization, coupled with Digital India and Jan Dhan Yojana, is aimed at strengthening transparency in money transactions by curbing black money, corruption and financial crimes. Therefore, it is the best time to strike the chord of second financial reforms and new banking sector operations in tandem digital network so as to achieve remarkable economic development at a faster rate.
In addition, a few immediate negative implications of demonetization are also seen in terms of minimum growth in GDP, losing job by wage earners in some industries and real estate sector which have affected the Indian economy to some extent. But, adopting good governance practices, providing sound infrastructure, congenial atmosphere to start business and ensuring trained workforce would have got positive long term impact on Indian economy. Further, total transparency in business operations through banking services would also increase tax revenue to the GDP ratio. Therefore, this paper will take up the issues relating to demonetization and its linkage to the implications of various sectors in Indian economy during pre and post demonetization periods discusses the experience and impact of demonetization on Indian economy.
How to cite this article:
Dr. G Ganesan, B Gajendranayagam. Impact of demonetization on Indian economy. Int J Appl Res 2017;3(9):433-436.