It all started on a good note in 1946 when the first demonetization took place in India in 1946 and our country also got independence in the same year. Currency notes of 1000 and 10,000 were removed from the circulation. This demonetization did not affect many people in the country because anyways these notes were not easily accessible to the layman, but later on with both the notes 5000 rs note was also introduced to India.
Again to curb black money in country prime minister Morarji Desai in 1978 again ban on 1000,5000 ad 10,000 notes and high demonetization act was implemented therein. Like the recent banned had shaken the whole country and have affected the layman also the ban on currency in 1978 did not affect layman as notes were again in the high denomination. But yes currency ban in 1978 affected largely to privileged ones. Like Modi Ji, Mr.Desai could not announce it over news channel so it was announced on radio and due to that banks were shut.
Though people cursing a lot standing in the queue for hours about currency changing and people having a lot of problems few good changes has come in Indian economy which will help Indian GDP to grow. Most of the things now have become cashless which will help to resolve the issue of black money of course which is the whole point of coming up with the concept of demonetization.
Trending down inflation, driving jobs and income, improving in government fiscal policies are some of the issues which will bring in positive changes in the country. Not only would this but ability to spend on infrastructure and tax revenue collection also improve by the government which would impact India in the longer run.
Though it’s a tough time for real estate and agents as rates of property has been affected and it will get affected more in next 3-6 months and of course luxury property projects are on hold now and whole real estate market is suffering for now and not so happy with Modi decision of demonetization but in long run they are expecting good returns and hoping to get things normal with time. In fact, real estate brokers are thinking to cut down rates to boost home sales.
No one can deny the fact that traditional sales have been impacted a lot which includes Kirana stores and whole sellers where every transaction is been done through cash as customers have cut back it’s discretionary spending which was 50% cut off after the note ban act by Modi Ji. Still, the situation is continuing in the same manner but in long term it will bounce back to normal as everything is going cashless which I have mentioned before also.
But for the large store’s situation is beneficial as noncash payments are been accepted by them. Their medium of taking receivables is not just cash so there they have been affected in a positive manner and of course in the long term also they will be in the beneficial situation as now being cashless is future. The needle is of course in favor of retail stores favor as in the first week of demonetization the sale went up to 15% altogether.
Over and above all the sector including Airline, Banks, Automobiles, Traveling, Infrastructure, Microlenders, Pharmacy, has been affected but long term effects would be in favor of country and initially I believe any change in your life affects you and this change is something which has shaken up the whole country and would take some time to settle down but would be in benefit of all.