India’s Journey with Demonetisation
Demonetisation or disallowing of some denominations of currency from an economy has been a close friend of India since long back in 1946. But has this ever been really friendly to us is the real question yet to be answered. Going back to 1978, when large denomination currencies (₹ 1000 and above) were banned from usage, was that really necessary for the economy or was it more a political step than an economic one? As the currencies prohibited accounted for only 10% of the total money circulation in the country. This could be one positive argument in favour of the 2016 action when ₹ 500 and ₹ 1000 notes accounted for 87% of the total cash. But is this argument strong enough to support one of the major change in the economical history of India? Let’s find out with some factual data and then come to a possible conclusion for the same. Almost all the sectors had a negative impact of the step taken, with Real Estate, Tourism, Luxury Items and Jewellery being ...