Demonetisation in India was one of the revolutionary decisions ever taken by Indian Government in last few decades. Whole country stood up with Prime Minister Narendra Modi to bring out the black money circulated within the country. People in India were stood for hours in queue outside banks & ATMs without any complain. They all were expecting “ache din” because of the brave step taken by our Prime Minister.
But after this long, if we analyse all the outcomes keeping in mind the loss & expenses the country bearded during demonetization we can conclude this revolution as big fat failure at present.
The process failed in bringing all the black money out from real estate. Also India’s GDP was expected to be rise at 7.6% but it’s now expected to be around 6.8%. The tax to GDP ratio in India is about 16.6% which is very low as compared to other growing economies around the globe.
The small & medium business sector was adversely affected by demonetization. The major part of transaction including wages is operated with cash in these sectors. Demonetisation crippled them by closing their ways to do transaction.
The failure of demonetisation can be understood by the fact that a total of Rs 3185 crores were seized by Income tax authorities during demonetization, out of which 85 crores black money is new notes.
Yes there are some good positive effects of demonetization like it succeeded in cutting off funding to terrorism groups. The banking systems are stronger than ever. The real estate values showed a drop. The growth of black money circulation within country has lost its pace significantly.
At last we hope with the coming time, we may witness some more positive outcomes of demonetization. The sacrifice of Indian people results in strong economy of India.