Politics
Economy
Economics
Finance
terrorism
Business Analysis
GDP
Digital Economy
Black Money
Tax Collection
Cash Economy
Demonetization
What we got from Demonetization (Analysis)
This thread will evaluate the changes that occurred in Indian economy n financial system in last 7 years on following parameters:
1. Black Money
2. Tax collection and GDP
3. Cash economy vs Digital economy
4. Terrorism
1/16
This thread will evaluate the changes that occurred in Indian economy n financial system in last 7 years on following parameters:
1. Black Money
2. Tax collection and GDP
3. Cash economy vs Digital economy
4. Terrorism
1/16
I took these 4 parameters coz on 8th Nov 2016 when Govt demonetized Rs 500, Rs 1000 notes they stated these 4 objectives.
Those who r student of Kaizen or have read the book "Atomic Habits" know that continues gradual change is always better
but sometimes
Those who r student of Kaizen or have read the book "Atomic Habits" know that continues gradual change is always better
but sometimes
U have to make a big change to start a fresh new.
Demonetization was that moment coz till that time specially due to long Congress rule, Indian financial system was in very bad shape n facing-
1. huge black money
2. Counterfeit notes
3. liquidity crunch
4. Cash economy
Demonetization was that moment coz till that time specially due to long Congress rule, Indian financial system was in very bad shape n facing-
1. huge black money
2. Counterfeit notes
3. liquidity crunch
4. Cash economy
Demonetization was one of step among 100s of other steps that India made after 2014 to restructure their financial system that was almost rotten by Congress govts.
Demonetization brought-
- Systemic change
- Behavioral change among people and entities.
'
Lets evaluate
Demonetization brought-
- Systemic change
- Behavioral change among people and entities.
'
Lets evaluate
1. Black Money
Black money is unaccounted money
The money u did not disclose whether its legit or illegit it doesn't matter.
If u didnt disclose it, its black money
If u sold ur land at Rs 20 lacs, u took Rs 10L in cheque n Rs 10 L in cash.
That 10L cash is ur black money.
Black money is unaccounted money
The money u did not disclose whether its legit or illegit it doesn't matter.
If u didnt disclose it, its black money
If u sold ur land at Rs 20 lacs, u took Rs 10L in cheque n Rs 10 L in cash.
That 10L cash is ur black money.
So one way to stop this black money is to stop this cash transaction
After DeMo people deposited all their money into banks
- Rs 10,000 crore never deposited in bank so that was direct benefit to govt
- after scrutiny of deposited money, Govt found Rs 59,000 cr undisclosed money
After DeMo people deposited all their money into banks
- Rs 10,000 crore never deposited in bank so that was direct benefit to govt
- after scrutiny of deposited money, Govt found Rs 59,000 cr undisclosed money
-17 lac people were found who had undisclosed money
- Govt launched operation clean money
check website cleanmoney gov in
- Tax of Rs13,000 crore recovered from non-filers
-During 01.04.2014 to 31.08.2022, Undisclosed income of Rs. 94,368 crores admitted
- Govt launched operation clean money
check website cleanmoney gov in
- Tax of Rs13,000 crore recovered from non-filers
-During 01.04.2014 to 31.08.2022, Undisclosed income of Rs. 94,368 crores admitted
- Cash transactions in the housing market have reduced by at least 75-80 %
- 8 lacs shell companies detected with Rs 85,000 crore of undisclosed income
- 344 persons convicted
- more than 2960 benami assets/properties valued at more than Rs. 18400 crores provisionally attached
- 8 lacs shell companies detected with Rs 85,000 crore of undisclosed income
- 344 persons convicted
- more than 2960 benami assets/properties valued at more than Rs. 18400 crores provisionally attached
2. Tax base and GDP
In India, Number of income tax payer were very less but DeMo brought the financial data of every individual on computer n that helped govt to track those people who were not paying income tax despite of eligibility
In India, Number of income tax payer were very less but DeMo brought the financial data of every individual on computer n that helped govt to track those people who were not paying income tax despite of eligibility
- In 2015-16, Income tax collection was Rs 7,41,945 crore, In 2022-23 it reached to Rs 16,61,000 cr. Just double
-4.63 crore people filed tax return in 2015-16 and in 2022-23 around 6.98 crore people filed Income tax return
- Tax/ GDP ratio improved to 5.97% from 5.47 in 5 years
-4.63 crore people filed tax return in 2015-16 and in 2022-23 around 6.98 crore people filed Income tax return
- Tax/ GDP ratio improved to 5.97% from 5.47 in 5 years
3. Digital Economy
Black money, tax theft, terror financing all these related to cash economy
As economy moves from cash to digital, these things automatically go down
One of the biggest achievement of DeMo was push to digital economy where India have become superpower
Black money, tax theft, terror financing all these related to cash economy
As economy moves from cash to digital, these things automatically go down
One of the biggest achievement of DeMo was push to digital economy where India have become superpower
- Share of payment by cash reduced from 88% in FY16 to 20% in FY22
- cheque transaction declined from 46% in FY16 to 12.7% in FY22 due to RTGS n other online payments
- Rs 84 lakh crore UPI transections in FY22. During Apr-June, FY23
- UPI transactions increased 785% in 3 years
- cheque transaction declined from 46% in FY16 to 12.7% in FY22 due to RTGS n other online payments
- Rs 84 lakh crore UPI transections in FY22. During Apr-June, FY23
- UPI transactions increased 785% in 3 years
- Rise of Fintech industry in India
- More than 9,933 fintech startups in India, market size of $56 billion in 2022, and it is estimated to reach $150 billion by 2025
-fintech adoption rate of 87% against the global average of 64% in India
- Recently IMP praised India for this
- More than 9,933 fintech startups in India, market size of $56 billion in 2022, and it is estimated to reach $150 billion by 2025
-fintech adoption rate of 87% against the global average of 64% in India
- Recently IMP praised India for this
4. Terrorism
- Naxal network completely destroyed
- Incidents of stone pelting almost gone to zero in Kashmir Indian GDP grew by 8.3% in DeMo year 2016-17 so the claim DeMo destroyed indian economy is also false.
Today India is among fastest growing GDP of world.
- Naxal network completely destroyed
- Incidents of stone pelting almost gone to zero in Kashmir Indian GDP grew by 8.3% in DeMo year 2016-17 so the claim DeMo destroyed indian economy is also false.
Today India is among fastest growing GDP of world.
So if we see DeMo in TOTALITY considering :
Digital economy
Widening of Income tax base
Curbing on shell companies, benami property
GST collection
GDP growth
we can say DeMo completely changed Indian financial system.
DeMo made it so robust n shock proof that
Digital economy
Widening of Income tax base
Curbing on shell companies, benami property
GST collection
GDP growth
we can say DeMo completely changed Indian financial system.
DeMo made it so robust n shock proof that
despite of Covid Indian, economy remained shock proof.
Read this thread for specific covid study.
DeMo was a fantastic case of financial system upgradation ( like if u change ur i3 processor to i7 processor of computer)
16/16
Read this thread for specific covid study.
DeMo was a fantastic case of financial system upgradation ( like if u change ur i3 processor to i7 processor of computer)
16/16
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