Effects of demonetization on Primary and Secondary Sector of Indian Economy

Second half of Financial Year 2016-17 witnessed demonetization and engagement ofbanking system in replacing currency notes of Rs 500 and Rs. 1000. 86.4% of thecurrency notes were squeezed from Indian Economy. Nelson Anitra and Timmerman(2011) in their edited collection life without money: building fair and sustainablecommunities opened accurately an outline of marxist idea for being de- monetize in sociallife to experimenting in living alternative economies.Demonetization is a distinguished feature of transition in Modern Bharat initiatedon the eve of 8th November with the declaration of withdrawal of legal tender of Rs 1000and 500 by the Prime Minister of Union of Bharat. Mid – Night of 8 and 9 November 2016witnessed restricted transactions with the currency of 500 and 1000 at few selectedpoints. Citizen of the country witnessed a new dawn without the legal tender of thecurrency they had. They were under utter Confusion. Citizens opted to exchange ordeposit their currency with the banks and stood in queue for long hours.The Purpose of the paper is to investigate the effects of demonization on Primaryherein referred to Agriculture and Allied services and Secondary Sector including industry,manufacturing and consumer goods of Indian Economy. The study will be based onsecondary data analysis and analyzed by adequate statistical data available throughdifferent government bodies and International rating agencies. The paper is conceptualin nature and lays focus on current and prevailing economic condition of the countryPresent Research has strong implications for Policy formulators, NEETI Ayog, beaucrates,politicians and society. This can help to develop more effective policy interest of peopleand country.