The opposition parties have very good tool to attack Indian Government for Demonetization. They alleges that it has damaged the economy of India. The GDP has gone down to 2 points. It has adversely effected Trade, Industries and Export. The inflation has gone up and unemployment is also on high side. They are showing figures to substantiate their contentions.They are trying to prove that it was a faulty decision. They believe that main objective of Demonetization was to detect Black Money which has failed.
However Government may be having limitation to show some extraneous reasons for which demonetization was executed. It can be seen from the result that the thousands of crores of Black Money were deposited in the Stagnant/Dormant Bank Accounts. The Banks are flooded with money and they have improved their liquidity. It has also helped government to identify Benami and the Money laundering Accounts. In short Government got list of those companies to proceed further. The Indian Government has sealed about One Lakh Fifty Thousand Benami/ Money laundering companies and has also disqualified about Three Lakhs Directors thereon. It has also helped to identifies the Benami Properties of people in order to seize them. The Government action in the matter may have antagonized the concerned people.
The Indian Government has already declared that Collection of Income Tax has increased considerably. It is reported that under Income Tax Declaration Scheme Government has collected about 50000 Crore Rupees. It is also reported that out of which about 5000 Crore Rupees are declared in Mumbai. The Income Tax Department is also trying to bring Maximum Number of people in Tax Net. It is now reported that Income Tax had raided 200 Eateries in Mumbai. One Pav Bhaji/ Jallebi seller has declared 50 Crores of Properties. One Juice Center had declared 5 Crores Cash and Properties under 'IDS' . Some Road Side Eateries have declared 25 Lakhs to 2 Crore Rupees. There are so many who wants to declare but they are hesitating keeping in view of future harassment. The Government has to find ways and means when only 3% of population are paying Tax in India while it is reported that in USA 97% people are paying Tax. Hence it is a major work for the Indian Government to bring maximum people in to Tax Net. It appears that the majority people are avoiding or concealing the income looking at the cash generation and cash financial activities in Indian Business/Trade.
There are post adverse effect of Demonetization on Economy but it may be Temporary or may be Advantageous on Long run. Hope for the Best.
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