a country which was infamous for corruption , is in news due to new currency reforms . the recent announcement of withdrawal of old currency notes by PM Narendra modi has set an example to combat the evil of corruption .
this step will be beneficial for poor and middle class families . the decision will lead to many positive as well as negative impact on the economy in short and long run .
there are some impacts of the reform as discussed below –
1. Real estate industry
Reduction in corruption will result into reduction of prices in real estate industry . earlier the industry has been the core consumption of black money . this is a good sign in the economy in the long run .
2 . Inflation reduction
withdrawal of old currency would result into inflation reduction as corruption would be controlled .
3 . Strengthened international status
the initiative will lessen corrupt activities further improving india`s status in corrupt countries globally .
4 . Anti-terrorism
the reforms are anti-terrorism in nature as black money was used to fund terror organisations in overseas countries . this will also be a major setback to counterfeit currency market .