11 Dec 2016

shahid khan

India's Demonetization turned out to be a massive failure

India's Demonetization turned out to be a massive failure



There is no denying that Demonetization is a massive failure in the history of Indian economy. The objective to curb the black money seems to be falling apart. Almost 70% of the population is opposing the decision of Demonetization. Apart from black money holders each and every citizen is suffering from this unplanned decision of demonetization. People are unable to fulfill their day to day needs.


Following are the issues people have been facing since the Demonetization began:

* More than 80 people died while standing in bank queue.

* Even after a month people are not able to withdraw their money from the ATMs
   as most of the ATMs are either out of order or out of cash.



* People have cancelled their marriages and other important ceremonies due to 
   the unavailability of cash.



* Cash mafias have emerged to exchange old currency in return with new currency 
   and they are charging commission for that.



* People are unable to spend the new Rs 2000 as nobody is ready to accept it.



* Local traders, small shopkeepers and labors are not able to keep up their jobs as
   they don't have enough cash to deal with their business.


* The government is emphasizing on digital money but not everyone is aware of 
   using the digital payment methods.

Apart from the problems faced by common people of India, the government is failed to achieve their objectives as some politicians from their own party were found with lakhs and crores rupees and that too in new currency notes. And also the government offered a proposal of 50-50 deal with the black money holders that seems like the government is ready to negotiate with them while the common man is suffering for their own hard earned money. Not a single positive result is shown in the last four weeks.



Even the financial experts consider denomination as the biggest blunder in the history of Indian economy. Finance gurus like Amartya sen and Manmohan Singh have made it quite clear that this certainly going to effect the Indian economy. Amidst the rising unemployment and high inflation rate common people are the ones who are being punished by the system for nothing. And this is somewhat a matter of shame for the Indian government.


On asking about the impacts of Demonetization Indian government says that people are supporting which is half baked information. And also at this situation government is expecting people to go cashless which is another bad thing for the people as not everyone  is a card or smartphone user so how could they expect all the people to go cashless.