Indian Journal of Economics and Development

Open Access Open Access  Restricted Access Subscription Access

Demonetization Whether the Stated Objectives have been Met with or Not:An Analysis of Success of the Move in the Present and the Future Prospective


Affiliations
1 Symbiosis Law School, NOIDA, Symbiosis International University 20130, India
 

Background/Objectives: Demonetization has had a great impact on the nation’s economy. One of the major parts of this was multiple economic concepts that were looked at prospective growth. There is a fundamental need to evaluate if the aimed objectives were met with.

Methods/Statistical Analysis: A major part of the study was carried out by the method of secondary research and data collection from secondary sources

Findings: Section 39(2) the point so highlighted that the supply so created when the currency notes were removed was not filled.

In agriculture the reason behind the existence of the growth rate in spite of the adverse effects of demonetization has been from 0.8%in FY16 to the current year, in Public Administration too there has been an observation of growth and this can mainly be attributed to the 6.9% to 11.22%."

"However every other sector has been adversely affected due to the move have been the sectors as below:

Mining: Decline in growth rate-12.3 % to 1.3 %

Financial and Real Estate Sector: 10.8 % to 6.5%

Manufacturing Sector: 10.6% to 7.7%

The Gross Domestic Capital Formation (GDCF) has had a steady decline from 29.2%to 26.9% and that is the lowest it has hit in 15 years.”

Improvements/Applications: In the case of demonetization there is a major need for the objectives being met with. To achieve these objectives one of the fundamental principles shall be as per the guidelines proposed by proposer of the scheme Anil Bokil.


Keywords

Multiplier Effect, Monetary and Fiscal Policy, Anikbokil Proposal, Cashless and Black Money Concept.
User
Notifications

  • C. Rangarajan. Shaarpen the focus on growth. The Hindu. 2017.

  • Multiplier effectInvestopedia: http://www.investopedia.com/terms/m/multipliereffect.asp. Date accessed: 04/04/2017.

  • India's Rs. 500 And 1,000 Demonetization is lowering interest rates and also inflation. https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/timworstall/2016/11/17/indias-rs-500-and-1000-demonetisation-is-lowering-interest-rates-and-also-inflation/&refURL=https://www.google.co.in/&referrer=https://www.google.co.in/l. Date accessed: 17/11/2016.

  • Cashless society – digital payments demonetizationcivils daily. http://www.civilsdaily.com/story/cashless-society/ Date accessed: 03/01/2017.

  • The man who gave modi the idea of demonetisation slams implementation.http://mumbaimirror.indiatimes.com/mumbai/cover-story/The-man-who-gave-Modi-the-idea-of-demonetisation-slams-implementation/articleshow/55551131.cms. Date accessed: 22/11/2016.

  • Television I. T. http://indiatoday.intoday.in/video/demonetisation-pm-narendra-modi-black-money-amartya-sen-on-note-ban-modis-napoleon-moment/1/854340.html. Date accessed: 10/01/2017.

  • Why a parliamentary act – or ordinance – is needed for demonetisation. https://scroll.in/article/823126/why-a-parliamentary-act-or-ordinance-is-needed-for-demonetisation. Date accessed: 28/12/2016.

  • Demonetisation and informal sector: Indian economy was slowing note ban compounded problem. http://www.financialexpress.com/opinion/demonetisation-and-informal-sector-indian-economy-was-slowing-note-ban-compounded-problem/577719/. Date accessed: 07/03/2017.

  • Demonetisation effect: GDP growth enters slow lane in Q4 at 6.1% .http://www.business-standard.com/article/economy-policy/demonetisation-effect-gdp-growth-enters-slow-lane-in-q4-at-6-1-117053101684_1.html. Date accessed: 01/06/2017.


Abstract Views: 256

PDF Views: 167




  • Demonetization Whether the Stated Objectives have been Met with or Not:An Analysis of Success of the Move in the Present and the Future Prospective

Abstract Views: 256  |  PDF Views: 167

Authors

Saurav Mishra
Symbiosis Law School, NOIDA, Symbiosis International University 20130, India
Aaditya Mishra
Symbiosis Law School, NOIDA, Symbiosis International University 20130, India
Anuraag P. Iyer
Symbiosis Law School, NOIDA, Symbiosis International University 20130, India

Abstract


Background/Objectives: Demonetization has had a great impact on the nation’s economy. One of the major parts of this was multiple economic concepts that were looked at prospective growth. There is a fundamental need to evaluate if the aimed objectives were met with.

Methods/Statistical Analysis: A major part of the study was carried out by the method of secondary research and data collection from secondary sources

Findings: Section 39(2) the point so highlighted that the supply so created when the currency notes were removed was not filled.

In agriculture the reason behind the existence of the growth rate in spite of the adverse effects of demonetization has been from 0.8%in FY16 to the current year, in Public Administration too there has been an observation of growth and this can mainly be attributed to the 6.9% to 11.22%."

"However every other sector has been adversely affected due to the move have been the sectors as below:

Mining: Decline in growth rate-12.3 % to 1.3 %

Financial and Real Estate Sector: 10.8 % to 6.5%

Manufacturing Sector: 10.6% to 7.7%

The Gross Domestic Capital Formation (GDCF) has had a steady decline from 29.2%to 26.9% and that is the lowest it has hit in 15 years.”

Improvements/Applications: In the case of demonetization there is a major need for the objectives being met with. To achieve these objectives one of the fundamental principles shall be as per the guidelines proposed by proposer of the scheme Anil Bokil.


Keywords


Multiplier Effect, Monetary and Fiscal Policy, Anikbokil Proposal, Cashless and Black Money Concept.

References