Demonetization: A Ripple Effect on Indian Economy

Farhat Mohsin, Stuti Sahni

Abstract

The value of a nation’s currency is the main indicator of its economic growth and development. It is among the major drivers behind the strong foundation of a nation’s place on international front. Economics and currency forecasting are both very much inexact sciences. The value of a currency has always been an important source of indicating the economic growth and ensuring the nation’s economic health. Currency changes affect our daily routine: whether we are trading in the foreign exchange market, planning our next vacation tour, shopping online goods from other countries etc. The value of domestic currency plays an important role in setting monetary and fiscal policies of a nation and strongly affects the stock and daily commodity market. 

The purpose of this research paper is to make the readers aware of current scenario and status of economy due to demonetization in India. This research paper will try to identify factors and issues involved in making India a cashless economy. This study also considers the impact of demonetization on road – side restaurants (RSR) in India with special reference to Delhi- NCR and focuses on the impact of futuristic digital trends in urban cities.

The present study was taken up with an objective to measure the impact of demonetization on road side restaurants. It also revealed the impact of Government’s demonetization effort on the cash intensive areas of the economy including everyday shopping for food and supplies The main objective of this study was to evaluate the impact of banning two most useable currencies as legal tender and people’s perception on the antecedents of being digital and to assess their selection criteria. The study was an attempt to examine different components involved in vendor’s selection decisions and their role in purchase decisions. This paper is based on primary .data collected through a self constructed questionnaire. The samples were drawn from the population of 150 respondents. The study was carried out at local markets located at Faridabad and South Delhi and the information collected was depicted by the graphs and tables. 

Keywords

Demonetization, Cashless Economy, Globalization, Digitalization, RSR (Road side restaurants)

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