Impact of Demonetization on Production and Export of Agricultural Sector in India

Abstract

Agriculture is the main occupation of Indian peoples and it’s contributes nearly 14 percentage of India’s Gross Domestic Product (GDP) and 13 percentages of total exports. Demonetisation was one of the problems were decline in agricultural growth. Major goal for implementation of Demonetisation was to eliminate black money, fight of tax evasion and to block financial activities from the terrorist and to promote a cashless economy. Farmers, who are the backbone of our national economy, were severely affected by the note demonetization of which invalidated 86 per cent of India’s currency. The study based on secondary information and the data were collected from 2011-12 to 2017-18 and were using the econometric technique like Simple linear regression model. The study concluded that the demonetisation is unlikely to affect agriculture growth but it is likely to hit the farmers badly, unless the public procurement of pulses improves and distress sales of perishables are addressed.