Does Demonetisation affect on Black Money in India?

Demonetisation withdraw high currency notes a challenging task for the government. This move by the government is likely to have long term benefits for the economy. Consumption oriented sectors, which witness a sizable magnitude of cash transaction, jewellery, retail, travel and tourism and trade are likely to be most affected in the shortrun. Indian economy is badly affected by black money as it is underestimating GDP, increasing inequality of income, increasing illegal activities etc. Over the past 60 years, the government has at various times announced several schemes offering opportunities to bring black money overboard but the result are not so effective. This paper discusses the impact of demonetization on different sectors of the economy. The present paper helps to know about present status of black money in INDIA and impact of demonetisation on economy.