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  • Category: Miscellaneous

    Do you think demonetization leads to diminishing of jobs in India?

    India at faster pace is leading to digitization and digital currency due demonetization. As millions of people are driven to use digital money the dependency of people on banks and various offices become less. Most of the works in government offices and private offices can be carried out online on Smart phones and PC,s with internet at our houses. This will lead to recruitment of less number of people in offices. Already young India is facing the problem of unemployment and this will add further fuel to this problem. Do you think is this true or otherwise give your explanation how demonetization help to give solution to unemployment problem.
  • #585687
    I do not think that there will be diminishing jobs only because of demonetisation. There may be some temporary gaps and disturbances due to situation as explained below.

    The present scenario in India related to the currency withdrawal of 500 and 1000 rupee notes is like withdrawing expired goods and replacing them with new stock.

    The initial panic was because of the totally unexpected suddenness it was announced. It was a shocker to people. People mistakenly thought that they have been made paupers by making the currency in hand invalid.
    The panic and misunderstanding could have been cleared and things would have come back to near normal within a few days , had there been a proper replacement of value with smaller denominations.

    What happened was, equivalent value was not replaced in full. Whatever was replaced was in still higher denomination of 2000 rupee notes. That made some bottlenecks and rendered the money at hand impossible for immediate use in many contexts.

    This situation will be there unless currency replacement is made for the full amount of OHD notes received back in the banking system. (Or at least to a major extent). Once that is reached, I expect things will be back to their normal.

  • #585701
    I think there would be shift from the jobs to self business motive. As cash less transactions are going to the future era, many people who are talented with creation of some products or offering services can opt for work from home with their portals to seek the orders and acceptance. I am seeing most of the women who are doing petty jobs have shifted to making silk thread drops and bangles and selling the same through online which not only fetches them good money but also hassle free. If this is going to be the case, surely the drop outs of jobs would be the order of day in future and I fully agree with the author.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

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