Impact of Demonetization in India

In India demonetization took place thrice. The first was effected on 12th January 1946, second on 16th January 1978 (Monday) and the third on 8th November2016 (Tuesday). There are various other countries which also tried demonetization and these include Nigeria, Ghana, Pakistan, Zimbabwe, North Korea, Soviet Union, Myanmar, Australia etc. India wanted to achieve a significant growth by adopting the demonetization strategy and create a huge positive impact on the entire economy in a long term. Under the English men in January 1946, the government introduced the demonetization of the banknotes of Rs. 1,000 and Rs. 10,000 denominations. In 1954, led by Nehru the Government of India introduced new notes of Rs. 1,000, Rs, 5,000 and Rs. 10,000 denomination. On 16 January 1978 under Morarji Desai the coalition government of India demonetized the currency notes of Rs. 1,000, Rs. 5,000 and Rs. 10,000 so as to combat counterfeit currency and black money. According to an estimate India has got one of the highest levels of currencies in circulation at over 12% of gross domestic product and of this cash, 87% is in the form of Rs500 and Rs1000 notes. This is a global practice.