Prime Minister Narendra Modi, on 8th November 2016, announced the demonetization of higher denomination currency notes. A move to curb hoarding of black money in our country, the surprise move entails numerous benefits for the Indian economy.
Here are some of its positives:
1) It shows
2) It will ensure a significant part of the black money gets back to the government. It’s not true that nobody gains from the money burnt/thrown away.
3) The old money not swapped in banks is effectively the government’s Profit. Say 17 lakh crs of total money existed in old notes, and only 13 lakh crores comes back. For remaining 4 lakh crores, the government can print new notes, and keep it themselves. Hence, the government does stand to make a lot of money in this (which can be then used for people).
4) It’s nice to see a PM who works, has innovative ideas and wants to make a change. We have had leaders who sat quietly and did little. It is good to see a man of action.