DEMONETISATION IN INDIA & ITS EFFECT ON GROWTH

Abstract

Many questions have been raised regarding the need & efficacy of demonetization. Different sceptics have different speculations related to the impact of the move on growth of Indian economy, with general perception supporting quantity theory of money. The paper checks for the reliance of growth on different components of money supply or feasibility of Quantity theory of money in Indian context through various data analytical techniques. Further, it attempts to answer the need for the economy to demonetize. Also, the paper analyses the readiness of Indian economy to become cashless & its implications in future.