TheBigPictureImpactof

Demonetization

The Big Picture- Dev...

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Atthestrokeofthehouron

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midnightof9thNovember2016,
Indialost86%ofitsmonetary
base.Theprint,electronicand

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socialmediahasbeenpraising

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PrimeMinistersmasterstrokeby
whichhehasreportedlydestroyed
thebaseofcorruptioninIndia.In

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postsbyemail.
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thissinglemove,theGovernment
hasattemptedtotackleallthe
threeissuesaffectingthe

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economyi.e.aparallel
economy,counterfeit
currencyincirculationand
terrorfinancing.Thereisno
doubtthatPrimeMinisterhas
pulledoutamajorcoopand
substantiallyenhancedhis
reputationasastrongleader.

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[InsightsSecure2017]UPSCMains

QuestionsonCurrentAffairs:13December
2016
December13,2016

9)Whatarethephilosophicalrootsof

copyright?DoyouthinkrecentDelhiHigh

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Courtrulingoncopyrightcaseisethically
sound?Justify.
December13,2016

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8)Itisarguedthatgovernmentshould

ensurethatalltobaccoproducts,including
bidisandsmokelesstobacco,aretaxedatthe
highestrateoftheGoodsandServicesTax.

ViewsandCounterviews:

Discusstherationalebehindthisargument.
December13,2016

Theideaofdemonetizationis

goodbutithastobetakeninto

enormouspotential.Atthesametimeithas

considerationthatmostofthe

manychallengesinrealizingthispotential.

blackmoneyiskeptinthe

Whatarethesechallenges?Howcantheybe

formofland,buildingsor

overcome?

goldorkeptabroad.Whatisin

7)InIndiasolarpowersectorhas

December13,2016

cashconstitutesonly4%ofthe

totalamountofblackmoneyon

(aboveaspecifiedthresholdlevel)firmsto

whichtaxesarenotbeingpaid.

spend2%oftheirnetprofitsoncorporate

Outofthis,alotofmoneyisin

socialresponsibility(CSR)projects.Doyou

circulationineverydaytransaction
likeifsomeoneisbuildinga
housethebillisnotpaidthrough

6)TheCompaniesAct2013requireslarge

thinkthislawhasbeeneffectiveinensuring
CSRactivities?Criticallyanalyse.
December13,2016

banksforsand,bricksetc.This

moneygoesintotheothersystems

TaxAppellateTribunal?Itissaidthatitsin

thoughithasbeendrawnfrom

needofrevamp.Examinewhy.Alsosuggest

bank.Thesethingswillcome
undercontrolwiththisstep.

5)WhatarethefunctionsoftheIncome

reforms.
December13,2016

4)Criticallycommentonthejustifications

Smallfarmers,sellers,

givenbytheSupremeCourtintheKoushal

merchants,dailywage

judgement.

labourersandtradersare

December13,2016

sufferingbecauseoflackof
properplanning,intelligenceand
foresightsuchasrecalibrationof
ATMmachines.Therewasneed

3)Whatarethecompellingarguments

youwouldgivetoadvanceIndias
relationshipwithIndonesiaasadefiningone
inAsiapacificregion?Discuss.

topileupenough100Rupee
notesandothersmaller
denominationnotesinthe
marketbeforetakingthis
step.Itisbeingsaidbycriticsthat

December13,2016

2)Inmanyinstances,courtsinIndiaare

makingrulesontheirown.Doyouthink
courtsshouldhavesuchdiscretions?Justify.
December13,2016

thisstepwastakenonlytobolster
theimageofthePrimeMinisteras
hehasbeenunabletodeliveron
GDPgrowth,inflationand
bringingtheblackmoneyfrom
abroad.

1)Examinethecausesofcyclonesinthe

BayofBengalandtheArabianSea.Itis
foundthatseverityofcyclonesisincreasing
inAndhraPradeshandTamilNadu.
Examinewhy
December13,2016

Demonetizationisanestablished
practiceinmonetarypolicyto

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tackleblackmoney.ThePrime

48,438likes

Ministerhasexplainedwhythisis
afinancialsurgicalstrike.Itwas
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meanttobesuddenly
implemented.Inthepast,

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Bethefirstofyourfriendstolikethis

demonetizationhastakenplace
twicebutitfailsbecausetheidea
istotackletheblackmoney
existingincirculation.Thisisnot

CATEGORIES

tacklecorruptionperseorthe

Categories

Governmentisnotsayingthat

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100%corruptionwillbetackled.If
announcementandtime
wouldhavebeengiven,this

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stepmightnothavebeen

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successfulincontrolling

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blackmoneyandcounterfeit
currencyincirculationcoming

November2016

fromPakistan,Nepalorother
countries.
Peoplearefacingproblems
becausethelimitof
withdrawalhasnotbeenkept

10

11

12

13

14

15

16

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18

19

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atahigherlevel.Ifthiswould
havebeenkeptatahigherlevel,

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W

therewerechancesthatthe

28

29

30

recyclingofblackmoney
mightbegin.Theidealmoneyin

Oct

24
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F

26
S

27
S

Dec

circulationhastocometothe
bankingchannels.
Itisalsobeingsaidthatwhatis
beingattemptedisreplacementof
currencyandnotdemonetization
itselfwhichwasunnecessary.This
isaterriblesetbackforthe
internationalstandingofthe
Indianeconomy.Atthistime,the
economyisstrugglingwith
slowdown.Thereisdemand

UPDATES

UPSCCIVILSERVICESMAINS
2016:HindiandEnglishCompulsory
Papers
7DEC,2016

UPSCCIVILSERVICESMAINS
EXAM2016:GeneralStudiesPaper
4(Ethics)QuestionPaper
6DEC,2016

leadingtopracticallynoprivate

UPSCCIVILSERVICESMAINS
EXAM2016:GeneralStudiesPaper
3QuestionPaper

sectorinvestmentandstagnant

6DEC,2016

sluggishnessintheeconomy

industrialgrowth.Ifwelookatthe
farmsector,thisistheharvest
time.Farmersgenerallydealin
cashandIndiaisalsolargelya

UPSCCIVILSERVICESMAINS
EXAM2016:GeneralStudiesPaper
2QuestionPaper
5DEC,2016

casheconomy.Thecash
transactionsinthiseconomy
arefarmorethanthetotal
numberofelectronic
transactionsdoneonadaily

UPSCCIVILSERVICESMAINS
EXAM2016:GeneralStudiesPaper
1QuestionPaper
5DEC,2016

basis.Inthetribalheartlandof
thecountry,thepoorpeople

MOTIVATIONALPOSTS

throughmiddlemenaregetting
theircurrenciesexchangedfor

MOTIVATION:FearofFailure

Rs.300orRs.400becauseoflack

8DEC,2016

ofproperinformationwhichis
hittingthem.

MOTIVATION:HowtoConquer
Mains?
1DEC,2016

Thestockoftheblackeconomy

MOTIVATION:TheChecklist

constitutesamajorpartofthe

30NOV,2016

GDPissignificant.Evenif50%of
thisamountiswithdrawn,the
kindofreliefthatRBIwillgeton

MOTIVATION:YouforYourself
23NOV,2016

itsliabilitiesandthesortof
depositscommercialbankswillget
willleadtoariseinthedeposit
andlaterontherewillbe
decreaseinlendingratesplus
fiscaldeficit.Theblackmoney
incirculationislikeasteroidin

RECENTCURRENTEVENTSPOSTS

InsightsDailyCurrentAffairs,12
December2016
12DEC,2016

theeconomywhichkeepsthe

InsightsDailyCurrentAffairs,10
December2016

demandgoinggivesafeelingthat

10DEC,2016

everythingisworkingwell.The
problemisthatinvestmentis
nottakingplaceinthe

InsightsDailyCurrentAffairs,09
December2016
9DEC,2016

economyandtherateof
growthofcapitalformationis
down.Theonlywaytobring
thisupistodivertmore
fundsintoinvestmentswhich

InsightsDailyCurrentAffairs,08
December2016
8DEC,2016

willhappenwhenthecostof

InsightsDailyCurrentAffairs,07
December2016

capitalcomesdown.

7DEC,2016

Conclusion:
Sofar,itcanbesaidthatthisisa
historicalstepandshouldbe
supportedbyall.Oneshouldlook
atthebiggerpicturewhichwill
definitelyfetchresultsinthelong
term.Thisiswhatthepeoplehave
beenaskingforalongtimewhich
hasfinallyhappened.

RECENTSECURE2016POSTS

[InsightsSecure2017]UPSCMains
QuestionsonCurrentAffairs:13
December2016
13DEC,2016

[InsightsSecure2017]UPSCMains
QuestionsonCurrentAffairs:12
December2016
12DEC,2016