Impact of Demonetization on Indian Economy

Abstract

Demonetization has offered both challenges and opportunities in the digitization of the Indian economy. Demonetization refers to the withdrawal of a particular form of currency of the nation from circulation. Demonetization is necessary whenever there is a change of national currency. The old unit of currency must be removed and substituted with a new currency unit. The study attempts to analyze the impact of demonetization on the Indian economy. The study is based on secondary data. The required data has been extracted from the various sources like research papers, published sources like reports, magazines, journals, newspapers and the authenticated websites. The study found that, by demonetization, black money will be taken out of Indian system; corruption will also be automatically reduced.