Demonetization in India: Its Effects on Economy and its Success in Getting Rid of Black Money

Udhava Gupta

Narendra Modi, the prime minister of India, on 8th November 2016, took a bold decision of demonetization of 500 and 1000 Rupees currency notes. The purpose of demonetization was to fight the prevalent black money market of India, but it had various unforeseen outcomes that went against what was ideally planned. This study will help us understand the real intention behind demonetization. Its short and long term effects on the Indian economy and to what extent was it a success in getting rid of black money. This study adopts a pragmatic approach, that’s both descriptive and analytical, based on secondary data to find the real effects of demonetization on the Indian economy. Demonetization turned out to be a disaster for the Indian Economy as it was not able to tackle the black market; instead it put the Indian economy in jeopardy, both, in long and short run.

https://doi.org/10.31871/IJNTR.4.10.7