Demonetization helped Indian economy in various ways:
- Most of the money in circulation is deposited in banks even if 90% of it is withdrawn again and 10% is left then also it will help the bank to tackle their NPAs.
- Recapitalization of banks have left banks with latitude to extend loans to corporate and individuals that in turn will spur the growth in long run.
- It was a giant leap towards cashless economy even full year PR campaign would not have transformed the mentality of people towards paperless currency.
- As we move towards cashless now all transactions will be recorded and tax evasions will be minimal that will give government a chance to reduce tax slabs as tax base expands tax slabs can be reduced.
Demonetisation” is first step of all three step( Demonetisation+ digital transactions+ GST) to stronger economy. Only Demonetisation could not stong the indian economy without GST and transparency in trtransactions.
Yes ! We can say that Demonetisation was not much successful. But it still helping economy in indirect sense.
Demonetisation is just a way to bring individuals into tax scenario. We have saw that After demonetisation government has imposed curbs on cash transactions after a limit and now promoting digital trasaction on every stage of bussiness or simple individuals transactions, now there is an eye on your all transactions.
Overall we can say that demonetisation could not help our economy if GST and Digital transactions not introduced after demonetisation.
Check out @PIB_India’s Tweet: https://twitter.com/PIB_India/status/1091594503931125761?s=09