Topic: Demonetization In India

PRESENTED BY: DANISH QADIR, FAZIL

BHAT, AND ADIL LATIEF
 Demonetization in India: An Imprudent Move

 On 8 November 2016, the Government of

India announced the demonetization of all Rs.500
and Rs.1000 banknotes of the Mahatma Gandhi
Series. It also announced the issuance of new
Rs.500 and Rs.2000 banknotes in exchange for the
demonetized banknotes. The government claimed
that the action would curtail the shadow economy
and reduce the use of illicit and counterfeit cash to
fund illegal activity and terrorism.
 Proposed Objectives of Demonetization

 Bring Out Black Money

 Proposed Objectives of Demonetization

 Tackle Fake Currency.

 Proposed Objectives of Demonetization

 Curb Terror Funding

 Proposed Objectives of Demonetization

 Increase Tax Revenue

 Proposed Objectives of Demonetization

 Cashless Economy
 Cons of Demonetization in India

 Loss in First 50 Days: 1.28 Lakh Crore.

Indian economy was severely
hit in the first 50 days after
Demonetization took place
 Cons of Demonetization in India

 Job Losses in 4 Months.

More then 15 lakh jobs were lost
due to the impact of demonetization.
 Cons of Demonetization in India

 Decline in GDP by 2.2%.

Due to the naive approach of government
Towards demonetization, the GDP of India
Suffered a decline of 2.2%. The same
Was predicted by former Prime Minister
Mr. Manmohan Singh.
 Cons of Demonetization in India

 Cost of Printing New Notes: 21000 Crore.

 Cons of Demonetization in India

 Loss of Lives: 150

Near about 150 people
lost there lives either by
standing in long queues
at ATM’s or because the
hospitals were not
accepting old currency
notes.
Demonetization in India: Ultimate Outcome

 According to a 2018 report from the Reserve Bank of India,

approximately 99.3% of the demonetized banknotes, or
Rs.15.30 lakh crore of the Rs.15.41 lakh crore that had been
demonetized, were deposited with the banking system. The
banknotes that were not deposited were only worth
Rs.10,720 crore, leading analysts to state that the effort had
failed to remove black money from the economy. The BSE
SENSEX and NIFTY 50 stock indices fell over 6 percent on
the day after the announcement. The move reduced the
country's industrial production and its GDP growth rate.
 Demonetization in India: Findings

 All the proposed goals of the government proved out to

be nothing, but a sham.
 Prudent planning was missing from the end of
government that resulted in loss of lives.
 Media, instead of critically analyzing the move made, a
masquerade out of Demonetization; claiming new
currency notes being embedded with GPS chip
technology.
 To prevent collapse of Demonetization, the government
took a U-turn; claiming the goal of demonetization was
to encourage Cashless Transactions.
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