“Demonetization” - A Dead End for Shadow Economy: A Critical Analysis in Indian Context

Abstract

The demonetization process has captivated many people's interest, and the system will face some serious resistance as a result of the decision. The present study intends to examine the effects of Currency devaluation and Indian economy's future prospects in light of the choice made. The study not only explores and navigates the topic of grafting, but it also covers a number of other topics that may have a direct or indirect impact on the Indian financial system as a whole. Every national interest triggers a well-established economy and planned infrastructural financial set up. The move to demonetize has however to some extent has met some sort of it. The black shadowed paper money required to be vanished off and this needs to be done keeping the fiscal deficit in row. Various available literatures were reviewed to know the impacts and effects of the move in this study. The statistical trend has a variety of long-term implications for the Indian economy on a global scale. The theme of the article also corresponds to prior demonetization choices in the past. As a result of this choice, a number of prominent sectors have suffered, and the research systematically attempts to assess their future performance. The outcomes of this study are, the move will plant innovative seeds such as elimination of Black Money, Tax Evasion and consequently, provides the Digital Platform and Cashless Economy. The change in the setup of traditional buying and selling of items would be changed forever, this in turn, would stagnant the dependency on Paper Money. Demonetization has a significant advantage in this regard. Income tax authorities will trace the money that is deposited. As a result, people will be hesitant to engage in tax evasion. In addition, the financing deal will be scrutinized and will be initiated through proper channel that will enhance the accountability. As a result, the flow of taxes would grow and the government would be forced to take more public welfare measures.