Long-term impact of demonetization

Abstract

This CCS report consists of outcome, analysis and impact of demonetization of Rs 500 and Rs 1000 notes announced on 8 November, 2016. The execution of this demonetization drive are studied and analyzed to verify its alignment with the stated objectives of the demonetization – Corruption (Black money), Counterfeit Notes (Funding Terrorism) and Digitalization (Lesscash economy). The review of literature published on demonetization, survey and analysis was focused on studying the impact across all stated objectives of demonetization on different sections on the economy. The scope of the research was limited only to latest demonetization and its impact on Indian economy. The scope of survey is limited to Bangalore City and its suburbs. The conclusions drawn from research study, analysis of secondary data and field survey of this project are compared to those from published literature. Contrary to the conclusions drawn on short term impact of demonetization, this report gives key outcomes and long-term impact of demonetization, researched not only as a separate measure but also along with other economic measures like RERA, GST and Digital India. Finally, the report gives recommendations on how the demonetization process could have been better executed for a higher impact on each of its several stated objectives.