Indian economic

1. GOOD AND BAD IMPACTS OF RECENT
DEMONETISATION IN INDIA
Presentedby
VICKY-29
MANOJ-30

2. MEANING OF DEMONETISATION
Demonetization is the act of stripping a currency unit
of its status as legal tender. It occurs whenever there
is a change of national currency: The current form or
forms of money is pulled from circulation and retired,
often to be replaced with new notes or coins.

3. WHAT HAPPENED ON DEMONETISATION
 On 8th November 2016 Government of India had announced that from today
onward rupees 500 and 1000 rupee note will not be a legal tender.
 Means that 500 and 1000 rupee notes will not be accepted by anyone except
the organization declared by the government.
 Public can deposit and change the currency from the bank and post offices till
30th December2016

4. WHAT IS DEMONETIZATION
 Demonetization is the withdrawal of a particular form of currency
from circulation.
 It is a process by which series of currency will not be legal tender.
 The series of currency will not acceptable as valid currency.

5. DemonetizationHistoryand BackgroundInIndia?
This is not the First time, When Indian Currency is Demonetized in India
.
Earlier it was done in 1946 with the complete ban of Rs. 1000 and Rs.
10000 Notes to deal with the unaccounted money i.e. Black Money.
Second time, it was done in 17 January 1978 by Govt headed by Morarji
Desai when Rs. 1000, Rs. 5000 and Rs. 10000 Notes were demonetized.

6. EXCHANG OF OLD NOTE
The Reserve Bank of India stipulated a window of fifty days until December 30, 2016 to
deposit the demonetised banknotes in bank accounts. The banknotes could also be
exchanged over the counter of bank branches upto a limit that varied over the days:
Initially, the limit was fixed at ₹4,000per person from 8 to 13 November.
This limit was increased to ₹4,500per person from 14 to 17November.
The limit was reduced to ₹2,000per person from 18 November.
All exchange of banknotes was abruptly stopped from November 25, 2016.
International airports were also instructed to facilitate an exchange of notes amounting to
a total value of ₹5,000for foreign tourists and out-bound passengers

9. PercentageShareofDenominations beforeDemonetization

10. Whatarethecausesof Demonetization?
 There can be many causes of Demonetization in any
economy such as ;
Black Money,
Currency Storage,
Corruption,
 Fake currency in the economy etc.

11. Demonetisation effect : 15 tonnes of gold sold on November 8-
9
MUMBAI: Jewellers sold 15 tonnes of gold
ornaments and bars, worth around Rs 5,000
crore, on the intervening night of November
8 and 9 after the government demoetised Rs
1,000 denomination notes , said surendra
metha, national secretary of India bullion &
jewellers Association (IBJA). IBJA has
2,500 jewellers registered with it form across
the country.

12. DEMONETISATION LED TO 1% DROP IN GDP SAYS
PARLIAMENTARY REPORT; BJP BANS IT
The Bharatiya janata party (BJP) MPs on Tuesday
stalled a parliamentary report which slammed
demonetisation. The report mentioned that
demonetisation led to a drop of one per cent in the
country’s GDP

13. Positive and negative impact of
demonetization

14. Positive impact of demonetization
The major decision which is made by the government will help us to
eradicate black money, corruption to same extent by replacing the cash
transactions in our daily activities.
Also Financial Intelligence unit will track all details of the
transactions from the banks. So now it is really difficult to get rid of the
black money.

15. Demonetization impacted 20 trillion Human Trafficking industry.
Other sectors like drug trafficking, illegal trade and the money use
in it , funding of election and involvement of various terrorist
group effected badly.
Step towards cashless economy.
Real estate can see significant course of correction.
Less chance of avoiding taxes.
Parallel economy.

16. The Demonetisation has badly hit maoist and Naxalites as
well. The surrender rate has reached its highest since the
demonetisation is announced. It is said that the money these
organizations have collected over the year have left with no
value and it has caused them to reach to this decision.

17. • Real estate industry is totally corrupted and now by this
stringent decision the real estate sector will bring in more
transparency. By doing it in this way we will have more
credibility, making it more attractive to the foreign
investors as well as domestic investors.

18. • HAWALA transaction – Demonetisation has crippled the hawala
rackets. Hawala is a method of transferring money without any actual
money movement . Hawala is used as a means for facilitating money
laundering and funding terror.

19. Negative impact:
The scarcity of cash due to Demonetisation led to chaos, and
most people holding old banknotes faced difficulties exchanging them
due to endless lines outside banks and ATMs across India, which
became a daily routine for millions of people waiting to deposit or
exchange the ₹500 and ₹1000banknotes since 9 November.

20. Several people were reported to have died from standing in
queues for hours to exchange their old banknotes. By the end
of the year 2016, opposition leaders claimed that over 150
people had died due to demonetisation.

21. Agriculture
 Transactions in the Indian agriculture sector are heavily dependent on
cash and were adversely affected by the demonetisation of ₹500and
₹1,000bank notes. Due to scarcity of the new banknotes, many
farmers have insufficient cash to purchase seeds, fertilisers and
pesticides. Farmers and their unions conducted protest rallies against
thedemonetisation.

22. Dumping ofagricultural produce
The demonetisation led to unavailability of cash to pay for food products.
The reduction in demand that arose in turn led to a crash in the prices of
crops. Farmers were unable to recover even the costs of transportation
from their fields to the market from the low prices offered. The prices
dropped as low as 50 paise per kilo for tomatoes and onions.This forced
the farmers across the country to dump their products in desperation.
Some farmers dumped their produce in protest against the government.

23. Business
By the second week after demonetisation of ₹500 and ₹1,000
banknotes, cigarette sales across India witnessed a fall of 30– 40%,
while E-commerce companies saw up to a 30% decline in cash on
delivery (COD) orders.
The demand for point of sales (POS) or card swipe machines has
increased. E-payment options like Paytm and , has also seen a rise.
According to data of Pine Labs, the demand for its POS machines
doubled after the decision..

24.  Demonetisation effect : 15 lakh jobs lost between January and April
this year, show cmie (Centre for Monitoring Indian Economy) data

25. Facts andfigures
The return of 99.3 per cent of demonetised currency
notes to the banking system simply meant the defeat of
the whole move — weeding out black money and
replenishing the economy with its equivalence.

26. North America Export Bank (2011-2018)

27. North America Import Bank (2011-2018)

28. IMPORT & EXPORT
OF
COMMODITIES
OF
NORTH AMERICA
WITH INDIA

29. EXPORT OF COMMODITIES FROM INDIA TO
ALL COUNTRIES OF NORTH AMERICA
S.No. HSCode Commodity 2016-2017 2017-2018 %Growth
1 71 NATURAL OR CULTURED PEARLS,PRECIOUS OR SEMIPRECIOUS
STONES,PRE.METALS,CLAD WITH PRE.METAL AND ARTCLS
THEREOF;IMIT.JEWLRY;COIN.
66,09,097.42 65,57,564.02 -0.78
2 30 PHARMACEUTICAL PRODUCTS 35,47,862.28 31,58,299.04 -10.98
3 87 VEHICLES OTHER THAN RAILWAY OR TRAMWAY ROLLING STOCK, AND PARTS AND
ACCESSORIES THEREOF.
20,99,966.43 27,85,018.20 32.62
4 84 NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANICAL APPLIANCES; PARTS
THEREOF.
15,57,173.63 20,26,918.91 30.17
5 27 MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR DISTILLATION;
BITUMINOUS SUBSTANCES; MINERAL WAXES.
12,54,865.51 16,63,279.86 32.55
6 63 OTHER MADE UP TEXTILE ARTICLES; SETS; WORN CLOTHING AND WORN TEXTILE
ARTICLES; RAGS
17,04,347.51 16,38,669.96 -3.85
7 62 ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, NOT KNITTED OR CROCHETED. 15,06,877.60 14,91,658.28 -1.01
8 3 FISH AND CRUSTACEANS, MOLLUSCS AND OTHER AQUATIC INVERTABRATES. 11,04,845.73 14,38,995.12 30.24
9 29 ORGANIC CHEMICALS 12,22,002.49 13,16,973.92 7.77
10 73 ARTICLES OF IRON OR STEEL 9,67,892.23 12,39,614.42 28.07

30. IMPORT OF COMMODITIES TO INDIA FROM
ALL COUNTRIES OF NORTH AMERICA
S.No. HSCode Commodity 2016-2017 2017-2018 %Growth
1 27 MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR DISTILLATION; BITUMINOUS SUBSTANCES; MINERAL
WAXES.
26,21,610.52 47,81,261.40 82.38
2 84 NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANICAL APPLIANCES; PARTS THEREOF. 22,79,069.34 31,01,466.57 36.08
3 71 NATURAL OR CULTURED PEARLS,PRECIOUS OR SEMIPRECIOUS STONES,PRE.METALS,CLAD WITH PRE.METAL AND
ARTCLS THEREOF;IMIT.JEWLRY;COIN.
20,87,625.66 25,90,131.78 24.07
4 85 ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS THEREOF; SOUND RECORDERS AND REPRODUCERS,
TELEVISION IMAGE AND SOUND RECORDERS AND REPRODUCERS,AND PARTS.
12,16,538.13 15,70,782.06 29.12
5 88 AIRCRAFT, SPACECRAFT, AND PARTS THEREOF. 30,22,719.90 15,36,635.82 -49.16
6 90 OPTICAL, PHOTOGRAPHIC CINEMATOGRAPHIC MEASURING, CHECKING PRECISION, MEDICAL OR SURGICAL INST.
AND APPARATUS PARTS AND ACCESSORIES THEREOF;
10,37,960.33 10,99,195.11 5.9
7 29 ORGANIC CHEMICALS 5,84,498.85 8,45,025.18 44.57
8 39 PLASTIC AND ARTICLES THEREOF. 6,74,138.64 6,72,038.07 -0.31
9 38 MISCELLANEOUS CHEMICAL PRODUCTS. 5,26,324.97 5,79,195.85 10.05
10 8 EDIBLE FRUIT AND NUTS; PEEL OR CITRUS FRUIT OR MELONS. 4,42,166.85 5,62,390.76 27.19