Introduction to effect of demonetization on economy:
Effect of demonetization on economy: Following the decision taken by our honorable Prime Minister to demonetize old 500 & 1000 notes has made drastic effect on economy’s working. people from poor to rich, adult to old everyone is standing in queue for deposting and exchanging their old currencies at banks. Due to limits on withdrawal of new currency has shown its effect on various sectors of economy.Effect of demonetization on economy
Effect of demonetization on economy: Real Estate Sector
Curtail in property rates have been observed following the demonetization of old 500 & 1000 notes. This is the sector which is affected most as cash is the primary part of transaction in this sector. Property dealers are not getting any customer and their business is worstly affected. Thus a great effect on this sector was observed since last week.
Effect of demonetization on economy: Jewellery market
As mentioned in government’s statement jewellery market sales has declined by 70%, This fall was seen after government declared to provide PAN for purchase of jewellery above Rs. 2 lakhs. Following this customers are attracted by providing with heavy discounts on making charges. Still no improvement is observed in the sales rather is moving down.
Effect of demonetization on economy: Pros
- India would step into digital world making itself a part of digital colony.
- Erase funding to terrorism.
- Economy free of corruption.
- Increase compliance with law and regulations.
- Fair economy.
Effect of demonetization on economy: Cons
Other business sectors are also seen affected due to lack of cash especially manufacturing sectors where payments to labourers is not been possible to make, so they are not ready to work anymore unless cash is made available to them. Untill the economy is back to work people are facing limitation to do their business.
Comment: This is the step taking into consideration long term vision for Indian economy to digitize and transparent working. This is possible only by people’s cooperation and patience.