Answer to Question #249700 in Microeconomics for Hemanth

Question

Demonetization has brought many changes in the INDIAN economy . Comment this sattemant

Answer 1

There was a lower domestic GDP growth after demonetization in India. It has lowered the economic growth rate by at least 2% in the first quarter. Small businesses in the country were worst hit by the move as most of them relied on cash payments. There were increased cases of unemployment as most people lost their jobs temporarily especially the Below Poverty Line families. However, demonetization has helped the Indian government in tracking black money and the money that is not accounted for. It also promoted digital transactions in the country and also improved the tax payers base which were major achievements to the government.