Demonetisation- Is it the Right Decision for Indian Economy?

Nowadays, demonetisation is a blooming topic of our country, India. People of every grade, whether they are labours or elite businessmen, everyone is talking about the demonetisation, which has been executed by Narendra Modi, Prime Minster of India. It refers to the banning of 500 & 1000 currency notes. Although it won’t affect directly to the life of people, many changes has been encountered by a citizen of India.

With the population of almost 1,335 billion, India is the second most populated country in the world but still counted under the developing countries. For a developing country, instant proscription of currency would certainly affect the Indian economy. This, we can conclude from the past few weeks after demonetisation, small-scales businesses are unable to generate wages for their labours which work on daily or weekly payment.

If we talk in term of GDP, the growth of GDP has been decreased to 7.1% from 7.5% during the first quarter (April-June), a year ago. It has been concluded that this will affect the Indian economy will last longer or might get worse.

No doubt, the decision of banning the bigger currency note will drain away the black money but what about the people who hardly earn in a day. The concern lies in the execution which can be better if they have planned well before implementing the decision. If the customization of ATMs was proper and on time then maybe the people of lower-class will not suffer this much.

Well, now the debate should not be on the plans as it has already been implemented. However, how to correct it and how to stop the falling growth of India is an issue. Which should be resolved as soon as possible else, the employment rate will be reduced, and in return, the growth of Indian Economy will go to a halt.

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