In the last few months of 2016, we saw whole of India suffering because of the demonetization. It became so hard to get cash that we saw huge lines in front of the banks. More than 100 people died because of the demoetization and millions of people felt various shocks. Millions of people lost their jobs and many industries saw shut down. All credit agencies pointed out that the Indian growth rate will be much lower because of demonetization as it was predicted earlier.
At first government of India said that Demonetization is for cleaning the black money from the market; however, almost all money came back to the banks which shows that this purpose of demonetization completely failed. Then government of India said that it is for dizitalisation; however, again it doesn't sound well with the people. Overall the loss of people and the country are much higher than what is achieved with demonetization.
The Government of India was not well prepared before taking this decision. It is was the responsibility of the government to take necessary studies before announcing such decisions so that it doesn't cause any problem to the people.
At first government of India said that Demonetization is for cleaning the black money from the market; however, almost all money came back to the banks which shows that this purpose of demonetization completely failed. Then government of India said that it is for dizitalisation; however, again it doesn't sound well with the people. Overall the loss of people and the country are much higher than what is achieved with demonetization.
The Government of India was not well prepared before taking this decision. It is was the responsibility of the government to take necessary studies before announcing such decisions so that it doesn't cause any problem to the people.
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Demonetization