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Impact of demonetization on unorganized business sector of Goa

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Author: 
Anuja G. Naik
Abstract: 

The story of Demonetization is not new to the Indian economy as there have been several instances in the past when the demonetization was actually practiced in India. The government of India in the beginning of second half of 20th century .i.e. in 1954 had demonetized the currency followed by the same repeated again by the government in 1978 when currency notes of small (100 and 500) and high denomination (1000) were demonetized by the government which was an act towards scrapping off the corruption practices in the country. The practice may seem very attractive at first to curb the black money that goes unaccounted from the Indian economy but rather the Central Board of Direct Taxes (CBDT) in the beginning of second decade of twenty first century had recommended that the demonetization would not have the estimated impact on the economy due to the fact that large number of people in the economy possess less than 10 percent of the wealth in the form of liquid cash whereas the remaining is kept in the form of valuables, properties that are unaccounted for while showing the tax returns, etc. In November 2016 the Central Government headed by Prime Minister Shri. NarendraModi took a decision to demonetize the currency with the purpose to strike at the heart of terrorism funded by such black money. The present paper attempts to trace the Impact of Demonetization on the Unorganized Business sector of Goa.

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