Need of Demonetization: Impact on the Indian Economy Demonetization: Reducing the corruption or new way of harrassment for the common man?

Abstract

Demonetization involves withdrawing a particular currency or series of currencies from circulation. The research manuscript examines the role and need for demonetization, its impact on various sectors of the Indian economy, including agriculture, farmers, daily earners, common people, beggars, and street hawkers. The primary role of demonetization is to curb the circulation of black money, eliminate counterfeit currency, and promote transparency in the economy. However, the informal economy in India heavily relies on cash transactions, making it difficult for the government to track and regulate them. The demonetization of high-value currency notes had a significant impact on the agriculture sector, with farmers being hit the hardest. Daily earners, common people, beggars, and street hawkers were also severely impacted, with many losing their jobs or facing reduced income. The lack of liquidity resulted in a decline in demand for goods and services, leading to a slowdown in economic growth. The sudden influx of currency into banks led to a strain on the banking system. In conclusion, demonetization had a significant short-term impact on the Indian economy, and its long-term impact is still unclear.