The smog of demonetisation

People queue outside an ATM of State Bank of India (SBI) to withdraw money in Kolkata, India, November 22, 2016. REUTERS/Rupak De Chowdhuri

Apart from the existing political think tank’s claim about the outcome of the bold step undertaken by the present central government on November 8, last year. The action of demonetization is a success or failure continues to be an ambiguity as none remains to be aware of the net volume of black money there’s in circulation and, even a lot more vital is the existence of the actual meaning of black money across all sections.


To the least achieved success story from the prior two currency pull back efforts belonging to high denomination from the state’s market, aimed at the same reason of clamping down the black money circulation. Modi might have put the populace in perplexity for the following 3 or 4 months post demonetization but his move was never unprecedented to him and his allies.




Demonetization as a measure to unearth and counter the spread of black money is shoddy. However, a certain section of people’s opinion regarding the act of demonetization was jazzy yet preposterous to hear. According to them, demonetization had some way forced most of the black money hoarders to act quick and free themselves of high denominations before the govt was ready to nab them by their collar. But this minuscule section of black money hoarders won’t feed to the nation’s famish roused due to the exercise of demonetization. In fact, these black money hoarder’s illegal holdings might sum up to a microscopic percentage of prevailing unauthorized cash-web.


Modi’s chest thumping laud about the gleeful acceptance of demonetization by Indian’s across geographies had very little to do with the actual scenario of what had happened in those 50 to 60 odd days.The unexpected but timely exhibition of sycophantism by the chief of an autonomous banking organization, readily bootlicking the motion upheld by the prime minister again proves the pre-brewing of the demonetization within the circles of his favorites.




Among numerous negatives, one good that this phenomenal exercise has done is the unveiling and initiating of well-attended deliberations across the nation. The exercise had brought forth the deadly picture of impecunious, indigent and destitute fiscal state of the nation. Important assessment results pushed behind the synthetically conceived bright figures were a common sight in most of the publishing of the government.The diminutive growth in terms of tax collection is again something midget to be adored as a part of the success of demonetization. As published in one of the noted political magazines of India, the projections of income tax collections in 2017–18 made within the last budget suggest a growth of around 25th over last year, compared to 22.7% tax collection growth in 2016–17. If this projection is perceived to be true, the income tax to gross domestic product (GDP) ratio will inch up from 2.3% in 2016–17 to 2.6% in 2017–18.