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Essays for SBI PO 2018 : Demonetization and it's Impact

Demonetization and it's Impact

One of the boldest moves in the Indian Economy took place on 8th November, 2016 when the government declared that the existing notes of Rs. 500 and Rs. 1000 to be invalid from 8th November midnight. The high value notes were ceased to be legal tender and this act of striping the currency from its status of legal tender is known as Demonetisation. This was an important step by the government to curb black money and counterfeit notes in the economy.

Impacts on the Economy

  1. GDP Indian economy is largely cash driven. This is why the economy slowed down due to the less- availability of cash in cash-incentive sectors such as real estate and manufacturing. The businesses were not able to meet the cash requirements due to the restriction imposed by the government. 
  2. Micro, Small and Medium Enterprises (MSMEs) This sector is one of the major contributors to the Indian economy and employees a large number of daily wage workers. These workers were mostly paid cash which led to unemployment and loss of jobs.
  3. Agriculture This sector of Indian economy relies heavily on cash. Farmers were facing a lot of problem in selling their produce at mandis. 
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This post first appeared on Gr8AmbitionZ, please read the originial post: here

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Essays for SBI PO 2018 : Demonetization and it's Impact


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