Impact of demonetization of indian economy
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4
This topic is a current curx and is equally good to debate.
Democratization of Indian economy:-
I don't find this step by the government as useful. Demonstration was mainly brought to tackle the black money scams in the country it was also meant to stop the flow of money which supported and strengthened the terrorist acts going on in Kashmir. But I don't find this step really helpful as the fake notes are still being made! From the very first day of issue of new notes fake notes have creeped in the markets. Some students were found with the new Indian currency. The days which followed we also found some terrorist with new notes! This makes us to ask the question are the new notes so easy to replicate? The retrieval of notes has made the Indian economy to lag behind. The GDP of the nation has also gone low by 0.7%. These steps have brought India down. The lower and middle class people have suffered great loss. This has also brought down the employment rates. Hence thousand have lost their jobs. The sudden retrieval of notes affected the lives of poeple in various ways.
I belive that such steps had to be taken with more decision . It could have been implemented in a better way.
1)The government should have trained the people for such a change.
2)They should have started this process of demonetization with slowly i. e they should have started giving change or a hundred rupee note instead of big notes so that there was no such confusion after the demonetization.
Democratization of Indian economy:-
I don't find this step by the government as useful. Demonstration was mainly brought to tackle the black money scams in the country it was also meant to stop the flow of money which supported and strengthened the terrorist acts going on in Kashmir. But I don't find this step really helpful as the fake notes are still being made! From the very first day of issue of new notes fake notes have creeped in the markets. Some students were found with the new Indian currency. The days which followed we also found some terrorist with new notes! This makes us to ask the question are the new notes so easy to replicate? The retrieval of notes has made the Indian economy to lag behind. The GDP of the nation has also gone low by 0.7%. These steps have brought India down. The lower and middle class people have suffered great loss. This has also brought down the employment rates. Hence thousand have lost their jobs. The sudden retrieval of notes affected the lives of poeple in various ways.
I belive that such steps had to be taken with more decision . It could have been implemented in a better way.
1)The government should have trained the people for such a change.
2)They should have started this process of demonetization with slowly i. e they should have started giving change or a hundred rupee note instead of big notes so that there was no such confusion after the demonetization.
Answered by
2
Answer:
Because of demonetization there is less liquidity and less cash flow in the market thats why inflation becomes down. As the black money goes out of the system the money supply will shrink to some degree. This will reduce inflation rate in the Lower absence of any open market interventions by the Reserve Bank of India.
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