Accordingly Prime Minister Narendra Modi's speech on demonetization made it clear that their target was to "wipe out black money" and route the currency back into the system. He added "To break the grip of corruption and black money, we have decided that the five hundred rupee and thousand rupee currency notes presently in use will no longer be legal tender from midnight tonight, that is 8th November 2016”.meanwhile the five hundred and thousand rupee notes hoarded by anti-national and anti-social elements will become just worthless pieces of paper.
Presently, two years after demonetization, neither could black money be removed nor could the economy improve. Furthermore according to a survey by Local Circles, a whopping 60% of Indians said that black money in the country has not died and in fact, its circulation is going to only increase before the 2019 General Elections.
Moreover in fact, the economy took a sharp knock from the cash crunch, with growth sliding to as low as 5.6% in the quarter through June 2017. Furthermore another growth setback came last year when the government introduced the Goods and Service Tax, which was marred by glitches and disrupted business activity, but, the Union government still believes that and Arun Jaitley said "Demonetization is a key step in a chain of important decisions taken by the Government to formalize the economy”.
