Demonetisation has brought major reforms in the Indian economy

The Indian economy witnessed a series of reforms last year, including Demonetisation, GST, and RERA. On the anniversary of demonetisation, Prime Minister Narendra Modi stated that he is thankful to Indians for supporting the government in its bid to get rid of corruption and black money from the Indian economy.

Demonetisation was a decisive battle which helped 125 crore Indians fight back against black money, stated Prime Minister Narendra Modi last month, as the BJP government celebrated the first anniversary of the implementation of demonetisation as the ‘anti-black money day’, while the Opposition observed a ‘black day’.

Prime Minister Narendra Modi stated that he “bows” to the people of India for wholeheartedly supporting the measures taken by the BJP Government in its fight against corruption and black money. The PM stated that demonetisation helped in formalising the Indian economy, which has led to better jobs for the poor as well as helped in cleansing the financial system.

The Prime Minister has also announced that Indians can give feedback on what they feel about the Government’s efforts “to uproot corruption and black money”, via the Narendra Modi app.

The government revealed that under demonetisation 0.00011 per cent of India’s population deposited nearly 33% of the total cash. He further revealed that in nearly 17.73 cases, cash transaction did not match with the tax profile of the depositor.

The report revealed that 58,000 bank accounts belonging to 35,000 companies were caught transacting Rs 17,000 crore after demonetisation. A number of companies have started pushing salaries directly into bank accounts post demonetisation and nearly 1.01 crore additional employees were enrolled under the EPFO.

The number of taxpayers has also increased 26.6%, from 66.53 lakhs in 2015-16 to 84.21 lakhs in 2016-17. The number of digital transactions has also gone up to 138 crores in August 2017 from 87 crores in August 2016.

Indians have benefited from the implementation of demonetisation as they have been able to avail benefits like a reduced rate of interest for loans, as well as a decrease in prices in real estate India.