The most important effect of demonetization is the change in spending habits of people. The biggest benefactors are Future Group's Big Bazaar and Reliance JIO. On January 16, 2017 Future Group”s founder and CEO kishore Biyani said their sales are up by 20%, Where does this additional market come to it? It is not new market.
With a push to cashless economy people need internet on all times in their mobile.As Reliance JIO is only offering free data for limited period it became the only destination. What is the conspiracy for doing demonetization in just a couple of months after JIO is launched?
As these groups have more quaternary and quinary resources, better infrastructural resources, they adapted the change and attracted the existing consumers to them. Small Retail entrepreneurs lost their customers.
For the benefit of two giant capitalists lakhs of small entrepreneurs are affected. People employed in those small shops lost their employment. These giant groups on expansion will give employment, it is of no doubt. But entrepreneurs are becoming employees. Self- dependent people are becoming job dependent. The employment which will rise in these companies is much smaller than the lost employment due to demonetization as they are highly digitalized.
This impulsive move rang death bells in traditional retail entrepreneurship by changing the spending habits of people. This can be seen as permanent effect as once the customer tasted the ease in accessing these giants and their ability to offer goods at a subsidized rates because of their mass procurement of goods, common infrastructural facilities, availability of quaternary and quinary resources.
Demonetization is an out and out failed move of the government. It failed to root out
black money, corruption. The cashless economy which Govt dreamed is not achieved as it
cannot be achieved. Demonetization not just ruined the small industry nut also ruined
country's macro economic parameters like Growth Rate, Rupee value, FDI,....
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