DYNAMISM(E) Vol. 1 Issue. 1 | Page 8

PAGE 8 D YNAMISM ( E )

# ISMEianWrites

BALAJI R
PGDM 2015-17
DEMONETIZATION - A CHALLENGE & PRIDE FOR INDIA

Pr overbs are easy to read , difficult to realize until it ’ s been experienced in a situation . “ The less routine the more life ” was one proverb to be experienced from late evening of Nov 8,2016 , when legal tender of Rs . 500 & 1000 currencies were withdrawn . This was part of a larger strategic plan to integrate national economy . Prior to this , government of India had implemented demonization of high currency notes twice ( 1946 & 1978 ). This was the first of its kind in 21 st century . This defined the approach & strategy of our governance in curbing black money transactions , fake currency circulation , path to cashless economy , restructuring & recapitalizing our monetary framework , eradication of corruption and digital revolution . After the announcement was made , ATMs became holy places with prayers for cash availability , which marked a tougher economic journey towards transformation , that Indians were headed to .

Post-independence , India had sailed through many unbreakable situations from wars to drought , terrorism to scams , LPG ( liberalization , privatization , and globalization ) to NPAs , but the demonetization fell into a completely different genre . The cause and effect were both emerge from within the country that have been widely influenced , triggered and protocoled by outsiders on all the aspects . As we are integrating and advancing into globalization , every decision is significant in shaping our destiny . It is important to see demonetization from a wider perspective . A broadened horizon will reveal a strong context for such a move with a primary objective of formalizing the informal sector which contributes 20 % of GDP & 80 % of employment .
The following list can throw some light on few important economy reforms & measures that emphasize India ’ s significant progress among emerging economies in last two decades :
Following this , we are moving towards a remarkable journey where the government is optimistic that an individual can open a bank account in less than 30 seconds , acceptance of smart card in all public services and efficient single window policy system and GDP growth rate at 8.5-9.5 % by 2020 and possess direct impact on our ease of doing business ranking to improve below 100 .
We are placed at a highly energizing situation and it ’ s too early to make a conclusion of demonetization of being success or failure . Our monetary & fiscal policy frame work for FY2017 derives a pattern of many hypothetical questions .
The main role and responsibility of government is to secure confidence of citizens & ensure that tax money paid had been effectively utilized and create an awareness of digital payment mode from small vendors to pioneers in real estate business . Hence training and development is key metric since change is not agile as far as unorganized sector is considered . However , one thing is sure- unfolding of this “ demon ” ( -etisation ) will go far beyond the economy . It will have an all-encompassing impact on social and political life of this country .