IMPACT OF DEMONETIZATION ON INDIAN ECONOMY

Abstract

This paper examines the impact of demonetization on Indian economy. Demonetization refers to cancellation of a particular currency from circulation and retired. The currency will not be considered as a valid currency. Or it can be said a change of paper currency where new units of paper currency replace the old one. In India, the currency was demonetized for the first time on 12^th January 1946(Saturday) and second time on 16^thJanuary1978 (Monday) and on November 8^th 2016 (Tuesday) the demonetization was announced for the third time by the honorable prime minister Narendra Modi where Rs 500 and Rs1000 notes were withdrawn from circulation. This move was taken to cleanse the economic system and end black money from the economy. This paper attempts to explain what is demonetization and its impact on different sectors of economy. And will try to analyze the positives and negatives of demonetization after 5 years of its implementation.