Demonetization 2016 – A Burden for the Indian Economy
Purpose: The purpose of this paper is to analyse the impression of the Demonetization process undertaken by the Government of India in 2016 in a three-fold manner. Firstly, analysing the impact on the overall GDP of the nation. Secondly, analysing the impact on the distinctive sectors of the economy. Thirdly, analysing the mark it left on the Indian economy. Design/Methodology/Approach: The researcher has selected the issue keeping in mind the need to critically analyse the demonetization process which was undertaken by the government in 2016 and discuss the impact of the same on the Indian economy as a whole. The research for this paper has been conducted using a doctrinal method which involves both qualitative as well as quantitative approach. National legal instruments, books of both national as well as international repute, international law journals, international journals on economics, reports by various prominent economists, internet references, reports by the government and opinions of experts, research scholars and academicians are the sources from which the material information has been collected. The researcher has conducted an in-depth analysis of the various aspects of demonetization as well as its history around the world. Findings: After conducting the study it was found that though the intentions behind implementing the policy were positive, the effects of the same took a toll on the various sectors of the Indian economy. Practical Implications: Though the Demonetization policy helped in curbing the circulation of unaccounted money in the domestic market to a certain extent and also helped in curbing terrorist activities, the negative footprints left by the implementation can be felt even today and this makes the study all the more important. Originality/Value: The study is concerned with the damages inflicted by the Demonetization policy in India which is a result of improper planning and implementation.