EIC (ECONOMIC, INDUSTRY WISE AND COMPANY) WISE ANALYSIS OF IMPACT OF DEMONETIZATION

On November 8,2016, the Indian Government announced its decision to discontinue the legal tender status of Rs. 500 and Rs 1000 notes. This demonetization had a significant and immediate impact on the state of the Indian economy. The original policy level stated objectives for this decision were: eliminating fake currency; inflicting losses on those with black money; and disrupting terror and criminal activities. Later, new objectives emerged like enabling growth in Bank Credit thus turning India into a Cashless economy. During the preliminary analysis, it was revealed that, the benefits could be relatively long lasting, when compared with the short term losses/costs. Although the economy took a short-term hit, but demonetization also unleashed trends that could potentially yield long-term gains. This study will analyze short term and long term impact of demonetization on economy, its various Industrial sectors, specific companies and overall impact on society. This article is an attempt to trace specifically the fiscal impact of demonetization on above mentioned items