ICSE Class 10 Answered

We have our Internal Assessment project on "TOURIST DESTINATION AND DEVELOPMENT OF TOURISM IN INDIA".Please suggest some ideas for the project.I had earlier asked about it too.But recently the topic was slightly amended.Please tell me what all I can write about this It's for 20 marks.

1.Other history and civics project is "Reconstruct the life of women of a girl in the 19thcentury or 2.illustrative study of the contributions UN in promoting health, education or environment issues in India.

In Maths, the concept of digital India.How and what are its impacts on society and its well-being.

and

Foreign currencies in comparison with Indian currency its impact on economy of India

and

Effect of demonisation on the economy of India.

In ENGLISH

Portia as the hero of the play and Shylock is a villain or tragic figure in the play.

Asked by rajapanambur | 09 Apr, 2017, 04:10: PM

Expert Answer

Hi Student,

I had helped you with the Concept of Digital India. Hope that helps you.

In this I will help you with Effect of demonisation on the economy of India.

What is demonetisation?

On the 8th of November, 2016 when the sun had descended below the horizon and the light of day had completely faded, when people were returning back home from a long day at work, a misty light of a new economy was brewing over the country.

All Rs. 500 and Rs. 1000 banknotes of the Mahatma Gandhi Series ceased to be legal tender in India from 9 November 2016. The government claimed that the demonetisation was an effort to stop counterfeiting of the current banknotes allegedly used for funding terrorism, as well as a crack down on black money in the country.

The move was described as an effort to reduce corruption, the use of drugs, and smuggling, controlling black money, fake currency circulation and terror financing India has amongst the highest levels of currency in circulation at 13% of GDP

IMPACT OF DEMONETISATION ON INDIAN ECONOMY

Government of India demonetised the currency as a tool to fight against corruption and black money, which are the major problems of Indian economy. The present demonetisation will be having some effects on Indian economy. Some of the major effects o f demonetisation is as follows.

Effect on Parallel Economy

One of the major objectives of the demonetisation is to fight against the black money. With the demonetisation the black money within the economy will be blocked as the owners of the black money in the form of 500 and 1000 rupee notes cannot replace it and deposit it in the banks as it is not having the proper documents. In this way the parallel economy will be affected to a greater extent which is the positive impact of demonetisation.

Short Run Effect on Money Supply

Money supply will be reduced in the market due to withdrawal of currency notes from circulation. This effect will be the short run impact of demonetisation. The problem of money supply will be solved when the new currency notes widely circulated in the market.

Effect on Consumption

Decrease in money supply as a result of demonetisation is also having an impact on production and consumption. Due to decrease in money supply production decreases and it affect the consumption negatively.

Fall in the Prices

Prices for different goods will fall with demonetisation of currency. The prices of consumer goods and the prices of real estate sector are expected to fall.

Increase in Bank Deposits The demonetisation increases the deposits in current account and savings bank account. As government announced the demonetisation, the money held by the household sector for the emergency purposes will be deposited with the banks, which will increase the deposits in the banks.

Increase in Alternative Modes of Transactions

Due to demonetisation the cash transactions are facing a reduction, which increases the other alternative modes of transactions like use of credit cards, debit cards online payments and transactions etc.

GDP will Decrease in the Short Run

GDP will be hurt due to the demonetisation. GDP of India may fall as a result of demonetisation. The extent of fall may be very less and it exists only for a short duration of time. This fall may not affect the growth of the economy. Effect on Anti Social Activities

Demonetisation is a mighty blow on the anti social activities. Due to the demonetisation funding of anti social activities, smuggling can be curbed. These anti social activities weaken the economy. It is difficult to the anti social activists to recover from this. So the anti social activities can be curbed to a greater extent.

Effect on Other Units of the Economy

Demonetisation will have short run impact on agriculture, small traders, small vendors etc. as agriculturists are dealing with the perishable commodity, not having other mode of payment other than cash transactions and lack of demand will affect the farmers negatively. The same kind of situations faced by the small traders and small vendors. This also a short run effect of demonetisation These are some of the major impact of demonetisations on Indian economy

CONCLUSIONS:

Demonetisation in Indian economy is having negative impact on the different sectors of the economy. Majority of the negative effect are short run effects. All these effects are solved when the new currency notes are widely circulated in the economy. On the other hand people are facing some problems in the exchange of currency notes. Even though people are facing such a problem people are ready to bear these problems for its positive effect on the economy. If government successfully clears all the problems, drawbacks associated with the demonetisation, this demonetisation will become the successful economic revolution in India and we can expect a better tomorrow with corruption free India.

You can also speak about the following before the Conclusion if needed.

Impact of Demonetization on:

Agriculture Sector

Business Sector

Service Sector

Answered by Rebecca Fernandes | 27 Nov, 2017, 02:31: PM