Marching to the 70th year of liberty, India never expected such a financial dilemma this late. However, if something stupefied the onlookers it might be the protracted unity and support that the act of demonetization received from around the nation. In a country of billion, a game with money could have ended in a catastrophe but thanks to that billion whom undeniably gave their heart for nation eating all hardships. While the common man was busy finding stability, the hoarders, and black money bankers were sweating and sued, ending up in the snarled law web. With stories popping up from various corners, what is the future of financial India & How will it be on 2017?
Worries shall be kept aside, because if not thesuccess we wouldn’t have bagged those black money in such a pace from unexpected personals in the top tier of hierarchy. The common man and black money are like fire and water, the relation is exhaustive and thepresence of one would eradicate the other! Nonetheless, the weak economy had loopholes to accommodate the corruption and financial abuses leading to an insecure platform in the economy biasing the existence of unholy rich men. Common man always led a skimpy life of scarcity and fight for survival, while the nutrition for the economy is limited to just 27% of thepopulation. Everything is elapsing into a liberty and the first phase might be prominent by 2017.
According to survey around 150 lakh crores are running the India economy, officially as the white money, however, a 50% underground fueling happens right under our nose, reckoning a whopping 75 lakh crores, unaccounted. Once the demonetization show ends, this money shall be pulled into the economy answering the skepticism. It’s true that the whole of black money doesn’t exist in cash, only a trifling 8% shall be recovered this way, but what if this decision close the doors for black money transit? The highly scrutinized circulation of bank currency under strict supervision might help curb the illegal laundering, which is why we get to see news regarding new currency seizures. But human psychology is puppetized by a group of so-called winged golden eyes or say ‘new makers’ disgracing the ethics of other good runners.
An estimated 0.5% GDP loss is quite normal when the financial nerve of a country get a hit, but that doesn’t mean the death bell has rung for one last time. Once the country is done with phase one financial revamping, nearly 50% of transactions shall be done electronically opening up a window for thecareful organization. The currency addiction of public is gradually reduced to build a strong foundation for tomorrow. All we see now would be the withdrawal syndrome, which happens every time when something good happens somewhere. There are many unsung doles for note ban, whose end will be marked an eternal financial stability holding the pillars for a super nation.
It is estimated that banking sector will receive a tonic of 0.5 ~ 1.5% of GDP by end of 2017, thereby generating more employment and revenue, making it one of the stoutest job sectors in India. Also, the heat of demonetization has fueled the conversion of unproductive and fixed assets into liquid or productive resources which will contribute to an increase in GDP, bank savings, enhanced buying power, thereby thrusting businesses and loan availability. An unspoken perk is also there, with less dependence on physical money, thecashless economy will come into existence avoiding the security threats, printing costs, and eco headache. The underpinning shan’t compromise at any cost when implementing something of this scale, so let us embrace trust and look for a better future.