Published On : 2016-11-11
India is acclimatizing to a major financial change. A change that is likely to not only give birth to a new economic revolution in India, but one that will also change the fate of our country in the years to come. Even as America went to the polls to elect the new President of the United States, a vote of a different kind was being cast here in India – a vote against corruption, black money, and terror.
The historic announcement of demonetizing the Rs. 500 and Rs. 1000 denominations of the Indian currency was a masterstroke by Prime Minister Narendra Modi. The country is bracing for a new economic revolution that will wipe out the deep-rooted corruption embedded in the very foundation of our country. In the last few years, black money has created a parallel economy in India and has suffocated the growth of the Indian economy. Black money is a bloodsucking leech that has crippled the organic growth of India. The frequency of currency circulation rose manifold in the last few years. PM Modi described corruption as the biggest blot stalling the growth of the nation and acutely affecting the middle-class and the underprivileged section of the country, forfeiting their basic right of living a better life.
The dawn of a new era
This decision to demonetize currency is not only a major blow to black money, but is also a decisive move to muzzle covert terror funding. In the last few years, the country has borne the brunt of innumerable terror attacks that has not only instilled fear in the minds of citizens but has also ripped apart our economic fabric. The Prime Minister – in his capacity – had done his bit in the past to arrest corruption by rolling out multiple precautionary measures. For example, by slapping 10 percent import duty on gold the government tried to clamp down black money but it inflated the trend of smuggling. This notable move of demonetization will flush out stashed black money from all corners of the country and help build the government’s treasury. A promising fact, if we are to consider the various economic reforms, policies, and projects such as Digital India, Make in India, and Swachch Bharat Abhiyaan that the government has initiated. By scrapping high-value denominations, India is closing its doors to black money hoarders. Smuggled fake currency is used to fuel terror activities within the country. Market insiders believe that this unprecedented ploy by the government will give a major boost to the market and will also control inflation to a large extent. This is probably the most effective blow on terror outfits that are thriving today only because of the constant feeds of black money coming from different parts of the world.
A move that could change India’s worth in the international market
This sudden strike against black money has enraged several political parties and many have branded it as a political maneuver with some slamming the government for its ill timing. However, this decision by the government couldn’t have come at a more appropriate time. Just when the tax-paying, law-abiding citizens of India were losing their tolerance levels against the growing financial disparity soaring in the country, this move by PM Modi will not only bring economic parity to the country, but will motivate every Indian citizen to pay taxes with a sense of pride.
Even as Indian citizens are coping with this change, market experts feel India will be accredited as a more transparent market and will woo international investors to usher in more FDI into the country. Sudip Saha, COO of market research firm Future Market Insights says, “This sudden transformation is aimed at building a much bigger and better future for our country. This move will encourage the use of digital money, which is another remarkable step to cork corruption and black money.”