There has been a long going debate in country on every platform like tweeter, facebook, or at work places regarding Demonetisation. Is demonetisation a success or failure? what are the effects of demonetisation and what will be its impact on indian economy GDP. After going through various social media discussion, news debates, and reading various articles. Its clear that demonetisation is not a failure. In fact demonetisation is a big success in INDIA. Demonetisation helping the country and has already helped in the following ways.
The government was having enough preparation before the demonetisation though only PF, FM and Two bureaucrats from RBI and finance ministry were aware about the actual news of demonetisation before 8:00, 08 Nov’16.
Support to indian banking sector which has been suffering from NPAs.
Having lots of scam in county at the time of UPA Government and their policy there had been huge chaos in the corporate sector on private investment after many multi billion dollar projects were stalled due to policy paralysis and lack of decision making of UPA Government. The Banks which were forced to advanced these projects started getting weaker due to exposure to these projects. Many defunct companies such as Kingfisher had a huge exposure of about 7500 Cr to Major Banks like SBI,Corporation Bank,Indian Bank etc. But after the move of demonetisation more than 12,00,000 lakh crore came in to banking channel in form of deposit and that around 70000 crores in jan dhan account only.
Fake Currency Network and Terrorism Across Border Specially in Jammu and Kashmir.
Fake Currency Notes is estimated to be about 15% in India amounting to 1.2 Lakh Crore INR . These were mainly been circulated into other parts of India from Kerala and West Bengal through Middle East routes. This fake currency racket were involving the youth and making them join illegal activity such as terrorism, underworld activity, drugs peddling etc. With the Move of demonetisation this money has been flushed out of the market and Pakistan can no longer cause economic terrorism in the country through these means.
Finally as a Tax paying citizen of this country i am very happy with this move of the Prime Minister. It will boost the Country’s Economy in the long run as the cash flow through black money and fake notes has completely been stopped. It will bring all the transaction made in the country being made digitally available to the Income Tax Department and Other Govt Agencies.
The Prime Minister had launched PM Jan Dhan Yojna to help the poor access the banking facility in the country. 25 Crore such accounts were opened in the past 9 months it has got a huge potential in making their lives better in the long run.
Aadhar along with Mobile and Jan dhan accounts can help the Govt deliver the Services without any middleman directly to the beneficiary. Even the Social security schemes such as Insurance and Atal Pension Yojna have been a Great step in this regard.
GOING TO HELP GST ALSO.
With Government having intention to bring the GST from 2017 April as the Black money and Black Market in the economy has been flushed due to demonetisation it will make all the businesses and transactions in the country being available to the Tax man.
It will not only increase the revenue but also increase the GDP through public spending of these taxes by the State and Central Governments in Infrastructure,Public Spending,Developmental Schemes.
Corrupt Politicians and Bureaucrats Who were involve in Black Money and Corruption
Few of the Corrupt Politicians like the Congress,Kejriwal, Mayawati, Mullayam, Lalu Prasad Yadav, Shiv Sena have condemned this move as it has ruined their own wealth which was being accumulated in the form of unaccounted Cash. It has made them difficult for the elections ahead to fight without the Cash Supply.
Medical Institutions/Educational Trusts
Many Medical and Engineering Colleges in the country take the donations using Cash this demonetisation has hit them very badly . They no longer would make their transaction in Black Money.
Shock Wave Across all the prices of Real Estate
The Real Estate in Big Cities like Bombay,NCR and Delhi were involving in Cash Transaction to make their Business which were in Black to avoid themselves from the Taxman. They also had hoarded the real estate properties with the money of bureaucrats, politicians to that extent that even a SC Judge Or RBI Government of this country with his Government Salary may not afford the housing in these Big cities. The Iron Fist act against black money through demonetisation has sent a shock wave across all the prices of Real Estate, through this correction of prices it will make the common man afford a housing soon in his dream city in India.