We'll occasionally send you account related and promo emails. Cashless society will increase credit access and financial inclusion. good thesis statement for climate change Unorganized sector proceedings, including small trade market activities, will remain volatile in the short-term. Even though the productivity of informal sector is low millions of people are depended on it for their livelihood.
It is estimated that there will be a negative GDP impact in the current quarter as consumption gets a shock in the immediate term. Sectoral Impact of demonetization While sectors in the unorganized economy are likely to be affected, technology and financial services are expected to gain. custom cigarette papers uk We'll occasionally send you account related and promo emails.
English essay writers on demonetisation in india assignment writing for nursing
Impact on Informal Economy In our cash-based economy where close to 83 percent of transactions takes place in cash, a cash deficit is bound to have a paralyzing effect on economic activity levels in the short term. Since every note is a liability for the government, the old currency will become worthless for those people, who choose not to disclose their income. Defence Defence National International Industry. Impact on rural economy Cash and cooperative banks are the back bone of the rural economy.
Your Reason has been Reported to the admin. Fill in your details: It also reduces the cost of managing the paper currency.
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This will adversely impact the retail sector. Cashless is the permanent solution to counterfeit currency which pays a big role in terrorism and smuggling. edit my essay dream house countryside Research is showing that in next two years the share of the formal economy in India could expand from 60 percent to 80 percent. But the sudden push may create job losses on a large scale. Inflation is expected to come down as too little money is chasing too many goods also the unaccounted money in the real estate will be taken out of the system.
Drag according to your convenience. Be that as it may but the fact remains we are seeing a rise in the use of debit and credit cards, particularly in the segment which probably never used cards before. thesis writers in delhi new It is important to note that a significant percentage of the Indian workforce is employed in this sector, which is likely to be affected by immediate liquidity issues.
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Hence the desired effect of bringing back the black money and thereby increase the govt income is difficult to achieve. Views expressed above are the author's own. My Saved Articles Sign in Sign up.
People who are holding black money in cash will not be able to exchange much as they would be in a fear of getting penalized and prosecuted by the authorities. The govt revenues are expected to rise as they will seize the unaccounted money. As a common man and someone who has been closely tracking the people at the so-called bottom of the pyramid first by virtue of heading a large microfinance institution and now a bank which serves this segment with passion along with other segments, I have a different take on this.
Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings. Cashless is the permanent solution to counterfeit currency which pays a big role in terrorism and smuggling. Will be displayed Will not be displayed Will be displayed. We cannot avoid short-term pains for long-term gains. Effects of Demonetization in India.