The Effects Of Demonetization On Indian Economy
This paper gives detailed information of demonetization and the Indian economy and how demonetization used for reducing black money. demonetization means removing old Indian currency from the country legally. This paper also gives depth view how demonetization affects on different economical sectors .this paper also view how many times India changes our national currency. we can also get about the latest changes in the Indian economy. We can also see how this change affects positively on the Indian economy and real estate, Banking and finance, E-commerce, and stock management.
Our prime minister Narendra modi declares 500rs and 1000rs notes arenot used further from 8 nov. 2016 in Indian currency. This is big fight of P.M. narendra modi against black money. When we can’t use any currency further legally this process is called as demonetization. Demonetization is not only used in India but also it is used in another country. In demonetization, we can’t use old currency legally. but in this situation government must have to give sufficient time to the peoples to change our notes, currency or money.
When P.M modi announced notice of demonetization related to 500rs and 100rs notes then our RBI governor Urjit Patel also supports this announcement of P.M modi .after that Indian government gives new notes of 500rs and 2000rs.
Demonetization In India Yearwise:
- First time in 1946: In 1946 first time we change currency of 500, 1000, and 10000 rs. Notes
- In 1970: In the decade of 1970 Indian government also checks tax and Judi Wanchu committee gives a suggestion of demonetization to Indian government but this suggestion cannot be accepted by publicly and this demonetization cannot be followed by Indian government.
- In 1978: In January 1978 political leader morarji desai who is leader of janata party announced demonetization but that time RBI governor I.G patel does not support his decision
Many times Indian government change only one currency at a time and after some time they change another Indian currency in 2005 by P.M Manmohan Singh . In 2016 Indian government takes the decision but many persons argued this decision. Withdrawal of 500 and 1000 notes is a preventive war against black money but in this process, common man have to spend lot of time and several hours waiting in ATM queues demonetization were affects on several following economical sectors.
Real Estate Sector:
When from 2016 we use GST demonetization real estate sector becomes more transparent so, why the system of real estate sector becomes more transparent because our popular real estate brands and companies follow all new rules such as GST because now buyers can easily trust on builders or home sellers. if sellers and builders follow all new rules then builders and sellers achieve more and more profit in his business when system is becoming more transparent then peoples can easily trust on the system. if people have to buy new house then interest on loan is decreased so, EMI is less on the home loan. So real estate becomes more and more interesting.
Because of demonetization banking sector can expand more money which is invested in out of our country so most peoples can transfers money in Indian banks due to demonetization because of this bank can easily gives loan to the mini business mans, rural primary school teachers and maids, all peoples can invest money in bank so common man can easily takes loans from bank when more money is invested in Indian banks then Indian government has more money and we can use this money for more government projects like smart city, better transport system,metro rail and new airports.
When we invest money than because of demonetization FD interest are increased by 5% so more and more peoples invest money.
Through E-Commerce we can do online marketing, online business and we can also gives payment online through Paytm, net banking or by ATM card
Demonetization has more advantages to our nation’s economy from these we have more money as investment and the business environment becomes more transparent. EMI on home loan aso decreased. interest on loan is also decreased. And the interest on FD’s also increased by 5% real estate sectors becomes more transparent because of demonetization.