On 8 November 2016, Prime Minister of India Mr. Narendra Modi announced on T.V that use of all ₹500 and ₹1,000 banknotes of the Mahtama Gandhi Series would be invalid past midnight, and announced the issuance of new ₹500 and ₹2000 banknotes of the Mahtama Gandhi Series in exchange for the old banknotes. The banknotes of ₹100, ₹50, ₹20, ₹10 and ₹5 of the Mahtama Gandhi Series and ₹2 and ₹1 remained legal tender and were unaffected by the policy. The government of India claimed that the demonetisation was an effort to stop black money in the country. It also stopped counterfeiting of the current banknotes allegedly used for funding terrorism. It was also a good move to reduce corruption, the use of drugs, and smuggling. Common people and even tourist faced problem due to this demonetization. Many People who has event like marriage and other having only old 500 and 1000 rupee notes will be in Big problem. They are really facing the high demonetisation disadvantages in India.
Economic growth in the country is expected to be lower than last year at 7.1% according to the report given by Central Statistics Office. “The growth in GDP during 2016-17 is estimated at 7.1% as compared to the growth rate of 7.6% in 2015-16,” it said. The Indian economy had expanded by 7.1% and 7.3% in the first and second quarter of the ongoing fiscal. The Reserve Bank of India had earlier last month cut the gross value added (GVA) forecast for current fiscal to 7.1% from 7.6% estimated earlier.
According to CSO,
- The anticipated growth of real gross value added (GVA) at basic prices in 2016-17 is pegged at 7% against 7.2% in 2015-16.
- The growth in the agriculture, forestry and fishing sector have been pegged at 4.1% compared to 1.2% in the previous year
- Mining and quarrying has been estimated to decline by 1.8% company to a growth of 7.4% in 2015-16.
- Manufacturing growth has been pegged at 7.4% vis-à-vis 9.3% in FY’16
- Growth in electricity, gas, water supply and other utility services is estimated at 6.5% as against 6.6% in the previous year.
- Growth in construction sector is expected to be 2.9% vis-à-vis 3.9% in 2015-16
- Growth in trade, hotels, transport, communication and services related to broadcasting is estimated to be 6% as against 9% in 2015-16.
Reference : economics times, wikipedia