Answer to Question #247387 in Microeconomics for Kiran

Question

demonetisation has brought many changes in indian economy comment this statement

Answer 1

1. The economy had experienced a slowdown. The growth rate has dropped to 5.7% pa. Also India lost its fastest growing economy title to China. Although it is short term downfall and India will see high growth rate in coming decade.
2. Increase in digital payment. People have moved to Paytm, BHIM App and through UPI and cards to make their payments. It has brought financial inclusiveness. As a result economy is becoming more transparent.
3. The main aim of demonetization to curb back more money. But India have not seen any significant results so the government has to find any other concrete measure to elicit black money. However IT department is investigating certain accounts of industry who have shell company accounts.

Many international organizations like World Bank, IMF, OECD have reduced economic growth of India for year 2017-18 to less than 7% pa.

Economic growth slowdown is short term and along with GST and programmes like Digital India, Make in India, Skill India Mission, India has expected to grow at much faster rate and achieve that ambitious two digit growth mark in near future.