Demonetisation Anniversary: Where India Stand Now
The main motive of the step is to make India a digital savvy country. Are we on the same track?
Photo Credit : Reuters
Last year on October 8, Central government’s decision to demonetise the high-value currency is one of the major steps towards the removal of black money in India. The drive has affected some extent to the general public, however, for the larger interest of the country, such decisions are inescapable. Also, it may not curb black money completely, but definitely it has a major impact in restrain black money to the large extent. Demonetisation has affected the different business sector in dissimilar ways.
Here are few takeaways from different sectors:
Real Estate: Demonetisation smashed the real estate market and it resulted in 50 per cent drop in the sector. The impact will remain the same for further five to six months or maybe years. While the short-term impact is negative, experts hoping that rate cuts in the coming months would boost home sales.
Textile industry: Most of the brands and retailers reported 40 to 60 per cent drop in the sales after demonetisation in its first few weeks. However, December onwards the sector has slightly improved.
FMCG Products: The buying power of the customers have also seen a decline in the last one year. When asked the customers, they said, we are not spending much on the luxurious item while buying basic thing has become a necessity which can't be avoidable.
It was also a short-term scenario which is becoming quite normal with enough supply of cash.
Impact of demonetisation on Service Sector: Service sector is the worse hit. As I mentioned above the buying power of customers has changed - Service sector has seen a deep decline in the number of customers.
The positive impact of demonetisation can be considered as a solution for a serious problem to generate and hold black money. More cashless transactions are creating more transparency.
As the main motive of the step is to make India a digital savvy country.
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