What is the effect of demonetization on Indian economy?

(A) Increase GDP
(B) Clean-up of Illegal Cash
(C) Improved Inflation Outlook
(D) All of these

Correct Answer : All of these
Explanation : Demonetization had a huge positive effect on the Indian economy. The clean-up of illegal cash helped in bringing more borrowings to the exchequer, improved inflation outlook and increase India's GDP. It was one of the biggest decisions taken by the Indian government since Independence and termed as 'mother of all reforms' in modern India, The Demonerisation stated that 500 and 1000 notes is no longer a legal tender. The move was taken by the government to strike down against the black money hoarders in the country and funding source of the Terrorism in the country including Naxalites. Some more positive impacts like removal of counterfeit or fake currency from the economic system were the achievement of demonetisation The newly introduced notes were contain very high security features and are almost impossible to replicate. Government's demonetisation move curtailed the flow of black money into the real estate sector. This eventually helped in making the much needed correction in the sector. The demonetisation move in fact pushed for Digital payment for any transaction. The digital push of the government also resulted in higher indirect tax revenue for the government in the form of Service Tax.
Useful for Exams : Quiz Programme, Interview & Competitive Exams
Like The Facebook Page CurrentGK for Current Affairs, Latest GK & Employment News
Web Title : what is the effect of demonetization on indian economy
Tags : Demonetization
Always Ask Questions

Leave a Reply

Your email address will not be published. Required fields are marked *