A CRITICAL REVIEW ON SHORT TERM IMPACT OF DEMONETISATION ON INCLUSIVE GROWTH OF INDIA

Abstract

In this paper, we focused on the impact of demonetisation on unorganized sector by which the inclusive growth of our country falls down. All the research and study shows that the inclusive growth of India has been affected in short run after decision implemented by the Govt. of India. GDP growth has been pegged at 7% in quarter ending December 2016, while the growth for 2016-17 has been estimated at 7.1%. This is in various estimates, including the International Monetary fund’s report reveals that the growth of manufacturing sector will be decline in next quarter; CSO reports also depict the picture of GDP’s downturn trend of manufacturing sector. The researchers also analyse the data and find that demonetisation affected the inclusive growth due to which the people engaged in unorganised sector loosed their jobs. The Government of India announced that the Rs 500 and Rs. 1000 denominated currency notes will cease to be legal tender. The move was targeted towards tackling inclusive growth, unorganized sectors and black money. After initial euphoria, questions began to emerge that the government of our country still does not have the proper report of unorganized sector’s data as the government has answerable machinery. But the demonetisation may be good for the organized sector of the India economy.

Keywords

• Demonetisation
• digitalization
• unorganized sector
• inclusive growth
• GDP