Its been roughly a week, in fact it has rather been a “rough” week since our Prime Minister Narendra Modi announced the ban of 500’s and 1000 rupee notes and all of a sudden I keep hearing this word “DEMONETIZTION” everywhere. Let’s go a week back in time to November 9th 2016. It was 8:30 PM and every citizen of the world’s largest democracy was left in shock by the announcement of the ban of 500 and 1000 rupee notes. Every news channel in the country was pouring out with headlines and debates and every household was baffled and totally confused about the situation. Since then we have been seeing people line up in long queues in front of banks and ATMs to withdraw cash. So what actually is happening in the country right now? Is this going to change the face of Indian economy as claimed by many? Or is it going to make things worse than they were previously? Lets find out.
India has been facing the problem of black money and it’s impact on economy for the past 5 decades. Some so called “responsible” citizens might think “The impact is on the economy. Not on me. So why do I have to care about black money and its impacts?”. If you are one of those “responsible” citizen that I just mentioned, this article is definitely for you. If you think that black money has not impacted your life then you are the biggest fool. Rates of petrol and diesel has gone up to Rs.70/L in 2016 from Rs.35/L in 2007. Everyday product in the market from vegetables to electronics to vehicles has seen an enormous increase in price in less that a decade and the credit to all these things goes to black money . Eradication of black money has always been a dream to many in this country but its always been used as just an attractive word by politicians during the election campaigns for votes. Its always been a fake promise and the citizens of this republic are so used to these fake promises that they have stopped paying any attention to them and they had arrived at a conclusion that this will always be a dream. But a first step against the economic annihilation was made after a very long time by our Prime minister and it is definitely an appreciable act.
IMPACTS AND CURRENT SITUATION
The idea of using demonetization as a weapon to eradicate black money was good but its a fact that only 4% to 6% of the black money is in the form of cash inside the country and the rest 95% of the black money is in the form of land, buildings or gold or kept abroad. But this move definitely has impacted the economy in a positive way as this will be an effective method of tackling the 3 most insidious economic issues which are terror financing, counterfeit currency in circulation and parallel economy. Definitely this landed as a check for all those who were involved in this mainly the political parties that bank the black money of many politicians in the name of party fundings. But how this has impacted on an average working class people of this country? Actually it has not impacted as bad as many people think. At least not to the extent of what is shown in media and TV. The lack of recalibration of ATM machines have impacted tourists, merchants, farmers, small scale businessmen, shop keepers and daily wage labourers and has left them with insufficient liquidity of cash on which they are highly dependant on. Not to mention the fact that India is still largely a cash economy and this decision freezed 86% of monetary base over night. This came in as a surprise to foreign tourists who are mostly loaded with 500’s and 1000’s. But this outcome was inevitable and was the only option to bring out the black money at least to some extent. Its definitely annoying to stand in ATM queues for a long very time but we all must only look at the positive side of this matter and wait for the days to get better.
MY POINT OF VIEW
Its a really cool move by the government that should have arrived a decade ago but at least it came now, better late than never. But the most funny part of this or rather should I call it a sad part is that even for such a great financial surgical strike against black money many political parties and some “social activists” are saying that this a bad move and its affecting the poor and needy. What I really don’t understand here is what the hell is wrong with these people? They say this is not going to bring back the 95% of black money that is trapped outside India. Really guys? Is that what your real problem is? At least it’s bringing the rest 5%. Look at its brighter side. For nearly 5 decades India has been a victim of black money and in the year 2011 India was ranked world #3 among the countries largest exporter of “DIRTY MONEY” for exporting Rs. 5.25 lakh crores out of India. For such a long time politicians have just been talking about bringing a change and now for the first time we are actually seeing some real change, a change that has brought hope among many citizens and middle class people. It is true that people are suffering a bit for the past 7 days but as a responsible citizen we are obliged to do our part for the countries betterment. This shortage of cash liquidity is not going to be permanent. May be it is going to be around for the next 10 days but this move by the government will have long term benefits like fall in prices of petrol and diesel, household commodities and many more.
Finally we are seeing a change that is going to have a positive effect on day to day life of people of this country. Imagine what would have happened if all the freedom fighters and the millions of people who followed Mahathma Gandhi had thought “Its not my fight,why should I bear the pain?” then we would not be enjoying the fruit of freedom today, they took the pain so that we can all enjoy freedom for generations to come. They did it for the sake of the country and its future. For the sake of the country and its betterment, let us all bear the difficulties we are facing temporarily and hope that this move by the government and our Prime minister will eventually result in a fruitful manner. After all we should be happy that Gandhi ji has finally updated his profile picture after a very long time through the new Rs.1000 notes 🙂 . JAI HIND!