Studying the Legality and Economic Cost and Benefit Analysis of Modi Governments Demonetization​​

Akrama Javed
Gujarat National Law University, Gujarat, India.

Volume IV, Issue I, 2021

This article deals with the Economic Analysis (based on Cost-Benefit) of Modi Government’s Demonetization. A Cost-Benefit analysis has been done on aspects like vetting Black Money, changing of tax figures, the menace of counterfeit currency, effect on GDP, inflation, digitization, ease of doing business, change in interest rates and unemployment. Primarily focusing on the latter, the article also goes on to explain the term ‘Demonetization’, it’s history in India, procedure, implementation and legality of the same through the analysis of various case laws, judgements, notifications and ordinances. In the light of all above, a conclusion is drawn analyzing the success or failure of the 2016 Demonetization in India.​