The impact of Demonetisation in India

With seven years rolled by Demonetization, declared by the Prime Minister of India, Mr Narendra Modi, India has seen a plunge in the global economy. Before demonetization, the Indian economy had stumbled with corruption and Black money. the soaring unaccountable money flew in free will. The wise move had restricted it. The fear of inflation was checked at the right time. The non-cash transaction was prioritized over cash. The biggest positive impact of demonetization was to bring the tax evaders into the tax net and allowing the slow growth of M3 supply and increase in the GDP level. In the short run, it impacted a fall in consumer spending and business investments, thus individuals savings in banks had increased and marching towards a digital economy. On the other hand, sectors including agriculture, SMEs, small traders has been badly disturbed due to absence of liquid cash. In the long run, they brought greater transparency, with fewer corruption and a better business environment. This surgical strick of demonetization has brought the cash GDP ratio back to normal and it will pave way for digitalized India in the world economy.