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Rudra Junior Artist Username: Rudra Post Number: 33 Registered: 03-2016 Posted From: 171.159.48.4 Rating: N/A |
Total currency in circulation in india - 140.3 billion USD https://en.wikipedia.org/wiki/Circulation_(currency) Currency in 500/1000 - 85% (could be around 80-85) - 119 billion USD (around 8 lakh crores(with todays exchange rate)) Now i see so many messages with 14 lakh crores, where did that number come from? i dont think there is direct correlation between demonetization and black money.Yes we can curb some of it but majority is in the assets. Having said that this is first step to streamline the digitization and benefits i can think of 1) Curbing fake currency (could be back in few years time unless there is a streamlined process) 2) Digitization 3) small percentage of black money There are other discussions around GDP, lets talk about ppp as nominal is not the right parameter for discussion. Current GDP of india is around 8.6 trillion USD and it is driven by various factors. How would this move will impact GDP? reminding that our currency circulation is just under 2% compared to that of our GDP. Retail sales indicator would go down and will have some implications on the forex market and will not have much impact on economic grwoth indication (GDP) unless this situation contonues for next 6-12 months , which i dont think will be the case. We will adopt to new system and come up with new loop holes to hoard up the cash  this is purely my understanding , could be completely wrong.. |