Demonetisation gave Rs 5 lakh crore advantage to Indian economy


Amar Ashok Jajoo | May 26, 2017 17:53

As per a report, demonetisation by PM Narendra Modi on November 8 last year, has resulted in an advantage of Rs 5 lakh crore for Indian economy.
Prime Minister Narendra Modi

As per a report by India Today, the demonetisation decision by PM Narendra Modi on November 8 last year, has resulted in an advantage of Rs 5 lakh crore for the $ 2 trillion Indian economy. The report is based on a high level internal report prepared by the government, which says that the Indian economy has now lesser cash than what was in circulation before demonetisation.

When PM Modi announced the ban on old Rs 1000 and Rs 500 currency notes, these notes formed more than 86 percent of the cash in circulation at that time. The report by India Today claims that around Rs 17.77 lakh crore was in circulation during demonetisation. Had it not been for demonetisation, this figure would have gone upto Rs 19.25 lakh crore by now. As per a RBI briefing in April, the total circulation by the the end of April in India was Rs 14.2 lakh crore, which means the Indian economy now has roughly Rs 5 lakh crore less the amount it would have had if demonetisation would not have taken place.