Indore: Demonetisation, a move meant to flush out black money and promote cashless transaction, seems to have backfired with trade and turnover of local traders and industries taking a hit. According to an estimate, city witnessed about 30% drop in trade and turnover post demonetisation. Moreover, cashless transaction, which increased initially, is now struggling to maintain the momentum. In the last one year, the cashless transaction increased just by 10% in the city. However, despite standing in long queues outside the banks, common men have appreciated and supported the central government for its bold step.
Exactly a year ago on this day, Prime Minister Narendra Modi in his address to the nation at 8 pm had announced the scrapping of Rs 500 and Rs 1,000 banknotes, citing corruption, fake currency, terror funding as threats to the country. On the first anniversary of demonetisation on Wednesday, Free Press tried to judge the effect of the unprecedented step on trade and industries of the city.
The interactions held with stalwarts of trade and industry of the city, revealed a shocking outcome of the currency ban. No doubt demonetisation has hit black money market considerably. Soon after announcing note ban, heavy rush was witnessed in jewellery showrooms in the city, which helped in laundering the black money into gold.
igh ranking office-bearers of the apex representative bodies of the trade and industries admitted that in one year of demonetisation, trade and turnover have dropped by around 30%. In fact, rolling out of GST also attributed to the fall of trade and turnover in city as well as micro, small and medium industries of the city.
This adversely impacted on employment opportunities. Industrialist says the worst affected are unskilled labours. As far as cashless transactions are concerned, it did not bring desired results. In fact, raising transaction charges on credit cards and other e-payments also hampered the promotion of cashless transaction.
What they say
Demonetisation was a welcome move to fight black money, but it hit the trade and industries of the city severely than the target. Approximately 30% drop in trade and turnover of industries in the city has been registered in one year. Cashless transactions also did not achieve the desired results.
– Sushil Sureka
General Secretary, Ahilya Chamber of Commerce and Industries. ( Chamber represents more than 60 different traders associations of the city)
Demonetisation was in fact a fine scheme, but implemented in wrong manner. Definitely the scheme hit the operation and resultantly turnover of MSME units. This has also attributed to creation of unemployment of unskilled labour of these units. But, we hope the scheme will yield good results in future.
– Alok Dave
President Association of Industries of MP. (An apex representative body of MSMEs of the state).
Demonetisation backfired the trade and industries of the city. The motive of the scheme was really pious, but it’s also a fact that it contributed in subduing the trade. As far as cashless transaction is concerned, it increased just 10% after the note ban. Rising of charges on payments made through credit cards and electronic transactions also hit efforts of promotion of cashless transitions.
– Nitesh Gupta,
Demonetisation scheme was good, but certain corrupt people tried to fail it by making hole in it. Though, it gave pain to us in those days in certain ways, but still we support the initiative and demand the government to take action against those who attempted to fail it.
– Sulekha Sharma
The scheme helped in checking corruption by rolling out new currency note of Rs 2000 denomination. It hit hard the real estate sector and affected the manufacturing sector. In fact, it helped in organised sector compared to unorganised sector.
– Pankaj Shah
Senior Chartered Accountant