Three years after it was implemented in India, the ripples of demonetization can still be felt among the public, especially in the business community. According to city businessmen, ever since demonetization was implemented in India, a severe cash crunch has ensued, and the purchasing power of people has gone down just because of the fears and uncertainties about a similar action like demonetisation taking place again.
According to Inderjit Navyug, former president of the United Cycle and Parts Manufacturers Association (UCPMA), “Ever since demonetisation was implemented in India, the problem of cash crunch and low purchasing power has kicked in. People now prefer to keep a majority of their savings in banks, and do not keep cash in hand like they used to do earlier, and spend without thinking much. Now, the situation is totally different. People think a hundred times before making even the smallest of purchase, and this is taking a toll on businesses.”
According to Atul Saggar, general secretary of Apparel Manufacturers Association, Ludhiana, “I do not think the government has been able to achieve all the goals which it had thought of achieving by implementing demonetisation. Moreover, ever since demonetisation, a general feeling of fear has kicked in among the public, as they think anytime new restrictions on keeping cash can also be imposed by the government, and they have now got inclined more towards keeping their money in banks only, rather than spend it.”
According to Bhushan Abbi, president of Knit and Fab Cluster, Ludhiana, said, “Demonetisation, coupled with GST, acted as two of the worst ever decisions taken by any government in the history of free India. Both these steps were ill-planned and imposed in a wrong manner, thereby causing such huge consequences that till date, the industry has not been able to recover from the losses, and the worst part is that till date, we are unaware about what the future holds for us, as the real impact of both these steps is coming out now.