Demonetisation makes India great
The 21st Century is clearly an era of producing wealth through disruptive approach.
A humble start with search, Google today is the largest advertisement revenue earning company in the world. Google disrupted dominance of Yahoo. Google is today is a company with $720-billion market cap. Similarly, many new-age companies have unsettled the dominance of old companies. The 21st Century is clearly an era of producing wealth through disruptive approach. India is no exception to it. On November 8, 2016, India launched the most successful demonetisation programme ever in the world. However, backlash led by opposition parties failed to see its actual impact. Let the following numbers speak the success of it!
Black Money detected, unearthed!
Rs 17 Lakh cr of old notes were recalled and 99 per cent of it were returned.
Rs 16,000 crore of currency never came back, which can be safely categorized as “black money not deposited”.
Rs 29,000 cr of stash detected and admitted.
200 shell companies, which deposited and withdrew Rs 17,000 crore, were detected. It can be called as “black money unearthed”.
Benami property worth Rs 800 crore were attached.
New taxpayers added, systems cleansed
56 lakh new tax payers added; number of tax returns filed rose by 24 per cent compared to nine per cent in previous year.
Advance tax collection of personal income tax grew by 42 per cent and self-assessment tax grew by 34 per cent.
Savings, Banking: biggest beneficiary
Deposits in banks increased by Rs 5.38 lakh crore by June 2017, helping banks to lend for development purpose. Additional liquidity in banks helped reduced interest rate by 1%.
Depositors got Rs 20,000 crore of additional income, resulting in higher savings and consumptions.
More than one crore EPF and ESIC accounts, resulting in higher availability of savings for economy.
Domestic savings reached financial markets with an average inflow of Rs 20,000 crores in mutual funds.
Fiscal benefits
Higher tax payment has improved the prospects of higher tax collections, which will bring down the need of incremental borrowings by the government.
More tax payers in the system will lead to lowered tax rates in future. This will lead to higher savings in the hands of tax payers.
The government can accelerate the development in the economy with more funds, resulting in faster progress of the nation and more benefits to people.
Social benefits
As a result of bank accounts, Direct Benefit Transfer of funds will help the poor find money in his accounts and will help in bridging the income disparity gap.
In 5-10 years from now, rural India will find due prosperity which will help reduce the stress on cities as more people will find jobs in their neighbourhood.
The writer is the promoter of KRChoksey Group of Companies