Hello, students today Essay for Students has come up with an essay on Demonetization. In this essay we have given information about the Demonetization and have told about the demonetization in Indian in 2016. So let us start with the essay.

Demonitised money

Essay on Demonetization.

Demonetization is the process of removing a currency unit from circulation and replacing it with a new one. In November 2016, the Indian government made the surprise announcement that it was demonetizing 500 and 1,000 rupee notes, which made up 86% of the country's cash supply. The goal of this move was to combat corruption and the use of undeclared income, or "black money," in the economy.

The demonetization decision was met with both support and criticism. Supporters argued that it would help to crack down on illegal activities and reduce the amount of black money in the economy. Critics, on the other hand, pointed to the negative impact it had on the informal economy and the difficulties it caused for ordinary people, who had to queue for hours at banks to exchange their old notes for new ones.

The immediate effects of demonetization were chaotic, with many people unable to access cash for basic necessities. The move also disrupted the economy, with some estimates suggesting that it shaved up to 2% off of India's GDP growth in the following year. However, the long-term effects of demonetization are still debated.

Some studies have suggested that demonetization did lead to a reduction in the amount of black money in the economy, as well as an increase in the number of tax returns filed. However, other experts argue that the effects were largely temporary and that the costs of demonetization outweighed the benefits.

In conclusion, the demonetization decision in India was a controversial move that had significant short-term consequences, but its long-term effects are still debated. While it may have achieved some of its intended goals, it also caused significant disruption and hardship for many people.

The End.

Students, what is your opinion on the Demonetization? Do tell us in the comment section.

This essay can be used by students of classes 1st, 2nd, 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th, 11th, and 12th for their educational purposes. This essay can also be used on following topics.

  • Indian Demonetization of 2016.
  • Effects of Demonetization in India.

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