Open AccessImpact of Demonetization and Goods and Services Tax (GST) on India’s Economic Growth: A Critical Review
Author(s) -
Jamil Ahmad
Publication year - 2021
Publication title -
south asian journal of social studies and economics
Language(s) - English
Resource type - Journals
ISSN - 2581-821X
DOI - 10.9734/sajsse/2021/v12i430317
Subject(s) - goods and services , currency , economics , economy , real estate , tertiary sector of the economy , business , market economy , economic policy , monetary economics , finance
India’s economic growth has been affected by the sudden withdrawal of currency notes from the circulation and hasty implementation of GST (Goods and Services Tax) in the economy. Demonetization not only pull-down the economic growth but also paralyzing the informal sector and small-scale sector of the economy. The Industrial output cracked and services growth slowdown and eventually the economic growth start declining. Demonetization harm each area of the economy such as the real estate sector, health care industry, the wedding industry and travel industry. On the other hand, the implementation of GST is affecting every sector of the economy and its supply chain too.
This paper tries to highlight the cost and benefits bear by the economy due to the twin strokes of Demonetization and implementation of the GST. The paper also tries to find out the expected rate of growth of the economy after the Demonetization and GST. Finally, the study tries to conclude that how it would be disrupted and benefits the economy in the long run.