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Black Money & Fake Currency: Is there Really An Impact?

So the much-hyped demonetization happened. Not that this was the first time as it had happened in the past when high-value currencies in 5000 and 10000 denominations were pulled off. Undoubtedly though this was a first of its kind exercise, as one it came without a warning and two it targeted the majority of currency in circulation (86%) in 500 and 1000 denominations. But the real question though. Did it really have an impact on areas like black money, fake currency, and even terrorism? These were the key pointers on which the country stood up and supported this exhaustive exercise at their own cost. Or was the goal primarily to target the 97% cash-based economy, the informal sector? I guess that's probably self-explanatory! Provided as time passes the results become more and more evident.  

What did we really achieve out of this painstaking exercise that lined up the entire nation of 1.3 billion outside the banks for two months?

The pro and cons and counter-arguments will always exist but beyond the usual blame game and bickering, how much did India really benefit out of this, is the real question. Of course, there will be short-term and long-term results. For once, even if we ignore what some of the media channels are claiming or how the opposition has described this exhausting exercise as a massive failure. It's important we don't remain ignorant to the facts. Having said that, we might then want to ascertain how many of the objectives of the whole exercise or the tall claims made by the government were actually met. 99.0 % of all the demonetised currency has already found its way back into the banking system. The growth rate for the first time in last three years has slipped to 5.7% and a massive slowdown is observed in the industrial sector. Unemployement as expected has surged.


But then again it's not all lost yet, as the damage eases out. Government is also looking into all the suspicious transactions as well as the defaulter accounts. At least that's what the government claims. Whether they act on it, remains to be seen. The tax payer base also seems to have seen an upward swing. With GST kicking in perhaps we might have to give it some more time before we can get more clarity on the results or the impact.

Read more on the entire fiasco:

https://hubpages.com/politics/Demonetization-And-The-Fight-Against-Fake-Currency-Black-Money

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