History was made on the 9th November 2016 when Prime Minister Narendra Modi almost gave heart strokes to more than 80% population by demonetizing the highest currency denomination. This isn’t the first time that demonetization has taken place in our country. There were two instances in the past, years being 1954 and 1978, but the impact was a holistic one this time. India had never seen the ruckus in those years.
The step of demonetization has had a greater impact on almost all the sectors. The overnight withdrawal of Rs 500 and Rs 1000 banknotes mostly impacted the part of the population that had been indulging in illegal means of earning cash and encouraging terrorist activities through huge inflow of cash. Corruption is a word that will not be erased so easily in India where there is no uniformity of cash flow, however, it can make a huge difference in the long run, as many experts believe. We need to wait and watch if the biggest stepping stone of the decade can bring about the change we all have been envisioning for ages.
Demonetization’s impact has been on Education and Job Industry lately with its impact on other sectors too. Internationally collaborated institutions may not face more adversity when compared to other locally and privately owned educational institutes. Let us explore the impact so far.
Demonetization and Education
The word “Education” sounds like a word that is free from all forms of corruption. This is a myth and has been proved right after the recent demonetization took its form. The impact on Education has been positive as well as negative.
- With this step by PM Modi, students planning for higher studies in India or overseas may get bank loans at much reasonable and cheaper rates. It is a sigh of relief for those economically backward sections of students who have been stepping back for high rate of interest till date.
- More investors are showing interest in expanding schools and colleges as Real Estate sector has got affected the most. That’s great news otherwise for the country and the investors.
- Transparency can be expected as many schools, colleges, and private coaching centers can no more be interested in accepting fees in cash but through online banking transfer, DD or Checks.
- International organizations will get in touch with India for new schools and colleges. This will create opportunities for employment and better education too.
- School and college who are still considered to be following the old school method of data entry and money entry will now get digitalized.
- Fund flow for Research activities will have to face a halt for a while.
- Under the table transaction in cash for admission will definitely minimize.
That was about the Education Sector. Job Industry has gone through a drastic change with demonetization.
Impact on Job Industry 2017
- E-commerce and startups have been benefitted greatly. Business enthusiasts are taking a leap into revenue generation with the effect of demonetization. As the action took place during the festive season, people couldn’t resist from making purchases. Shopping in cash took a lay off but digital shopping took an elevation with the step.
- With more E-commerce businesses growing, hiring of employees to work digitally as well in-house is expected in the coming months.
- Unlike E-commerce, Manufacturing and Auto Industry has seen a drop in terms of revenue generation and subsequently impacting the hiring strategy. Machinery and larger equipment that are bought in rural areas in cash have been facing challenges with the earning potential.
- IT/ITes, Pharma, Telecom and FMCG are estimating to grow this year which implies more employment.
- More people are planning to settle abroad and this will attract young talents this year for the filling up of the gap in those sectors which are expecting to grow.
Education and Jobs are the two pillars of the growth of a Country’s economy and if they bloom in the coming years, India is sure to reach the zenith of success. Many souls cried and showed frustration at this big decision. It is only time that will walk the talk. Right now sit back and relax to see the reaction unfold gradually.