Recent Currency Demonetization and Its Probable Impact on Indian Economy

Abstract

The BJP led government in India has made a surgical strike on black money on November 8, 2016 to wipe out black money, counter tax evasion and destroy counterfeit currency. Demonetization as a clean-up exercise may turn out several excellent changes in the economy. At the same time, it generates inescapable income and welfare losses to the poor sections of the society. The demonetization exercise may produce following short term or long term, consumption, investment, welfare, growth impact on Indian economy. The object of the article is to assess the probable effect of demonetization on Indian economy.

Keywords: Demonetization, India, GDP, inflation, interest, repo, reverse republic money, counterfeit currency etc.