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Demonetization and GST Derailed India’s Growth Story: A Reality Check

Journal: International Journal of Mechanical and Production Engineering Research and Development (IJMPERD ) (Vol.10, No. 3)

Publication Date:

Authors : ;

Page : 8625-8632

Keywords : Economic Growth; Black Money; Demonetization; GST;

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India has moved ahead from being considered as unsafe investment destination and once been labeled as a crawling economy with indecisive political will and numerous hurdles. After the introduction of Liberalization, Privatization and Globalization policy in 1991 Indian economy started bearing fruits of progress and the growth engine started steaming to bring India among the front runners in terms of sustained economic growth. Today India is one of the important constituents of BRICS nations and is redefining economic growth with potential of becoming third economic power (China, US and India) by 2030 (Price Waterhouse Coopers (PwC) Report 2015). India is today is the fifth largest economy in the world at 3.2 trillion USD in terms of nominal GDP (2020) and third in terms of PPP. In a span for five years India moved from 2 trillion to 3 trillion economy) The economy is expected to expand to 5 trillion USD by 2025 as per Morgan Stanley Report 2017. The other positives in India's favor are stable and committed government at the center, one of the youngest nations having 65 percentage of population below the age of 35 year. When economy was marching with strength there were certain issues which needed immediate attention relating to increasing base of black money, tackling corruption, and restructuring indirect tax system. The Narendra Modi led government in order to combat the black money announced demonetization of Rs.500 and Rs.2000 currency notes on 8th November 2016 making them to lose legal status of tender money from midnight of same day. Apart from this the Government introduced tax reforms by introducing GST with effect from 1st July 2017 replacing multiple cascading taxes levied by the central and state government

Last modified: 2020-11-19 16:43:46