What is the cost of demonetization in India?

He, however, said that cost of demonetisation was 1-2 per cent of the GDP. “Let’s say if there is loss of 1.5\% GDP then it is Rs. 2 lakh crore plus amount,” former RBI governor said.

What is the profit of demonetisation?

Of the Rs 15.41 lakh crore worth invalidated notes, notes worth Rs 15.31 lakh crore have returned. In February, 2019, the then finance minister Piyush Goyal told Parliament that Rs 1.3 lakh crore black money has been recovered through all anti-black money measures including demonetisation.

What is GST and demonetisation?

Economists observe that while the demonetisation decision was flawed from the word go, the GST regime could have worked better. GST, which subsumed almost all the indirect taxes, sought to simplify the tax burden for businesses operating across several states, which earlier had individual and complex tax systems.

How much money is recovered after demonetisation?

Did demonetisation achieve the target of killing black money? According to RBI data, almost the entire chunk of money (more than 99 percent) that was invalidated came back into the banking system. Of the notes worth Rs 15.41 lakh crore that were invalidated, notes worth Rs 15.31 lakh crore returned.

How much money came back after demonetisation?

Black money failure Of the notes worth Rs 15.41 lakh crore that were invalidated, notes worth Rs 15.31 lakh crore returned. In February, 2019, then finance minister Piyush Goyal told Parliament that Rs 1.3 lakh crore in black money had been recovered through various anti-black money measures, including demonetisation.

What will be the impact of GST and demonetisation on Indian economy?

“The two successive shocks of demonetisation and the GST had a serious impact on growth in India. Rajan said a growth rate of seven per cent per year for 25 years is “very very strong” growth, but in some sense this has become the new Hindu rate of growth, which earlier used to be three-and-a-half per cent, Rajan said.