Effect of Demonetization- On November 8, 2016 India’s prime minister, Narendra Modi, declared that all 500- and 1,000-rupee notes, making up 86% of the cash circulation in India, could no longer be used. This demonetization initiative caused a sudden breakdown in India’s commercial ecosystem. Trade across all sector of the economy was disrupted with this demonetization. The main motive of this demonetization was to eradicate the black money which was in three forms:
Money that is in the country but in higher value currencies i.e Dollar, Pounds,etc
Money stashed under mattress or somewhere else to avoid tax.
Demonetization will likely result in people adopting virtual wallets such as Paytm, Ola Money etc. With this new policy people have started going cashless. Paytm and other similar apps are on the rise. People have actually started using such apps. This behavioral change could be a game changer for India in the world of digitization.
Benefits of demonetization in India- Digital India without a doubt is a very commendable project and deserves full support. Some of the major advantages of digital India are as follows:
1) Indian villages will be benefited the most as 70% of the total population in India lives in villages. The Villagers will get an opportunity to discover new things through internet facilities.
2) Employment will increase as companies will employ more people to accomplish their company's goal.
3) No corruption as it can be tracked easily.
4) It will benefit many sectors like IT sector, Power sector, Education sector, Telecom sector, Electronics manufacturing, Banking and Financial sector, etc
5) It will save time as paper work will be reduced.
No one can imagine themselves without smartphone and computer with a working internet connection. This initiative will help people to fulfill their dreams. The best part is that government thought first for development of rural areas in the field of education, their living style and to provide employment. Through the digital India initiative, we can promote technological application in rural parts of India, which would be the most important step towards the development of the nation. There will be transparency in government functioning areas which will curb the corruption. In an era where everything is linked to Internet, we need to get digitized if we want to match our footprints globally.