I hope you are having amazing day, as like always back with my new blog but the topic of today is bit different from all other blogs. Yep, it’s bit economical and here am not going to show stats, just my view on the biggest change occurred last year in the month of November.
Demonetization was the biggest economical change in India as per me, on November 8 2016 according to it the old currencies of 500 and 1000 has been banned. It came as a surprise for every Indians, but right after 2 years and few days, today am going to write about its positive as well as negative impacts on our life.
Now lets talk about its Positive Impacts:-
The motto behind this change was to extract black money which was hidden in the form of 1000 and 500 rupees. If we will go with the research’s than it is clearly visible that a huge amount of black money has been recovered from many well know businessman’s and politicians.
When Demonetization occurred government has given a time frame to exchange the currency with new one’s but as higher class people were having lots n lots of notes and government fixed a limit to exchange. So, it has been seen that currencies were either burnt or thrown on the roads.
According to economic survey the growth in India’s GDP also got hiked in 2018-19 by 7 to 7.5 percent. The average predication for this fiscal years was set to 6.75 but right after demonetization, it got hiked too drastically. Today, India holds a great economical position around the world.
The Economic Survey also says that after the demonetization, Income tax collection has also been hiked and after the introduction of GST From around 2 percent of GDP between 2013-14 and 2015-16, they are probably going to ascend to 2.3 percent of GDP in 2017-18, a noteworthy high.”
Like every thing has 2 sides, so it also have let’s talk about it negative outcomes:
Soon after the demonetization the shortage of notes were the only problem with every Indian individual. The release of new notes took little time, so crowd being mad with the decision has also been recorded.
The biggest problem was only with the banks as they were only allowed to exchange old currencies which brought drastic decrease in exports and imports between India and other countries.
As i have said above that class of every people has to face it and people from middle class suffered a lot, because the amount which they were having was submitted in banks and remittance of cash from ATM’s has also being stopped during that period.
India is agriculture based economy and the farmers who need cash for buying seeds and chemicals faced shortage of cash, due to that the production of crops has also been decreased.
Soon, after the release of new notes public faced a lot of difficulty as in start only 2000 rs. notes were getting remitted from ATM’s and it has been seen that half of the people denied to accept because it was hard to pay back the balance when purchasing daily goods or travelling by bus.
At last, i just to want to conclude that Demonetization was a mixture of profits and loss at start but right after 2 years it is clearly visible that it has given us a lot of things. The black money recovered after this has been used for the welfare and development of society, many new schemes have also been launched and decrease in corruption rate has also been remarked.
All in all it was a good attempt to stop money laundering, corruption and many other things which has given us a few positive things but as i have said everything has 2 sides.