An Analysis of Demonetization and Its Effects on the Indian Economy

One significant development in the Indian economy is the demonetization. Individuals involved in illicit activities such as money laundering and tax evasion experience terror as a result of this. On November 8, 2016, the Indian government said that the 500 and 1000 rupee notes will no longer be accepted as legal money. The value of the cash supply in the nation is made up of 500 and 1000 rupee notes to the tune of almost 86%. Here, the government's primary goals were to battle tax evasion, eradicate black money, end terrorism funding, stop inflation, find counterfeit money, and encourage a cashless society. The news caused a great deal of difficulty for the general public in meeting their everyday transactions. We also note that this demonetization lowers the economy's growth rate. Additionally, demonetization has certain negative effects on the Indian economy. The main objectives of this study to know the reason of demonetization and its impact on economy. As result we see that demonetization affected economy positively as well as negatively.