Impact of Demonetisation and GST rollout on Indian economy
In November 2016, India's government initiated a bold yet risky economic intervention aimed at curbing corruption. This move, which involved the sudden demonetization of 86% of the country's cash in circulation, sent shockwaves throughout the nation. On November 8, 2016, Prime Minister Shri Narendra Modi banned the use of 500 and 1000 rupee notes, a drastic measure taken to combat the prevalence of black money. This step resulted in the deposit of 35,000 crore rupees in banks within three days and the destruction of approximately 1500 crore rupees in black money. This article discusses the impact of demonetization on various segments of the Indian economy, including agriculture, manufacturing, real estate, and the service sector. It also examines the benefits and challenges associated with this monetary policy change. Furthermore, the article explores the introduction of the Goods and Services Tax (GST) in India, its impact on different sectors, and the implications for personal finance products and services. Finally, it delves into the effects of GST on loans, credit cards, financial planning services, tax consultancy charges, and insurance products.