The Demonetization drive by the Centre has not only caught the average citizen unawares but has also thrown a spanner in immediate demand for automobiles, consumer durables, electronics industry in the country. This impact would obviously be more in the short term, but over long term India economy will revive stronger than ever.
8th November 2016 Prime Minister of India in a 40 minute long speech announced the Demonetization of existing notes of Rs 500 and Rs 1000 during a televised address on Tuesday evening. PM announced that the notes of Rs 500 and Rs 1000 “will not be legal tender from midnight tonight” and these will be “just worthless pieces of paper.
It is not exactly a Demonetization exercise— as it does not dispense with the value of a note—but one that simply replaces the existing notes with new ones, thereby addressing the issues of counterfeit currency and black money. In countries where currency notes are demonetized, the denominations simply disappear from the system. But for simplicity I will continue with the word Demonetization in this article.
Reasons for Demonetization:
1) To eliminate black money in the economy.
2) To reduce the cash circulation in the economy which “is directly proportional to corruption in our country,” according to PM Modi.
3) To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism in India.
4) The move is estimated to scoop out crores of black money from the economy.
Effects of Demonetization on Manufacturing Industry
September 2016, the Index of Industrial Production (IIP) growth displayed a positive print after two-consecutive month’s contraction. IIP for September stood at 0.7% versus the (-)0.7% recorded in August 2016. October IIP numbers to be on the strong side, on the back of festival season. However, the situation is expected to turn sour thereafter from November, which would clearly have a negative impact of currency Demonetization.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Go Green
Environment depletion has been a serious concern for the world since past many years. In response to that, many organisations have taken several initiatives with the intension to deter the further damage to the environment. In our CSR column, we present to you the initiatives taken by Bill Forge and Tesco in the field.
Success: It Needs You
Road to success has never been so easy. One is bound to encounter ups and downs in this journey. Hard work, consistency, discipline are some of the factors that need to be practiced religiously in order to achieve success.
Rewrite Your Story
“She is free in her wildness; she is a wanderess, a drop of free water. She knows nothing of borders and cares nothing for rules or customs. ‘Time’ for her isn’t something to fight against. Her life flows clean, with passion, like fresh water.” – Roman Payne
CSR for Women Empowerment
Multitasking is the middle name of women and donning multiple roles comes naturally to them. Women with their spirit, strength and sensitivity are undoubtedly the backbone of any society. The competence shown in discharging their duties, care and compassion displayed in taking care of the family are the two sides of the same precious coin ‘ the woman’.
Visionary Budget, Vibrant Manufacturing!
The clarion of ‘Make in India’ laid the foundation for growth in Manufacturing. The sector has witnessed increased inflow of FDI since then; the sector is expecting more conducive tax structure and ‘Ease of Doing Business’ with the roll out of GST soon. Meanwhile, as a catalyst, the Union Budget 2017 has features in store for the manufacturing sector to provide it right impetus for continuous growth.
Government Initiatives for Better India
THOUGHTFUL, is one word which can be used to describe budget 2017. Aftermath of demonetization and subsequent cash crunch in the system lead to slow down in the economy, manufacturing sector also slowed down, quarterly result of companies were affected (with few exceptions). Finance Minister has tried to curb demonetization effect in this budget.
Electric Revolution: JBM Solaris Ecolife 9m
Electric Buses have overcome the ‘under development’ phase and have hit the market for practical use. Joining the diverse fleet of buses on road is the Ecolife 9 Electric bus by JBM, with promising features and a futuristic approach. Proclaimed to be emission-free and handy to the user, the bus guarantees a low operation cost.
Managing Inventory for Better Operational Efficiency
Inventory in manufacturing or production unit has both advantages and disadvantages for different departments. While Inventory has been shown as a burden on OPEX due to maintenance cost by some, some attribute virtues to Inventory as it offers better customer service by variety of choices, availability and low handling cost etc. While the excess or shortage of Inventory has definitely negative impact on business, a proper management of it can help in operational efficiency and better customer service
Patience & Passion Equals SWAYAM
How often does it happen that people hold on to their dreams till they have achieved it, enduring all the ups and downs? Well, here is a story of patience and passion that inspires us on many levels. One project, eight years and participation of more than 250 students! SWAYAM has earned it all and so have the minds behind it.
Age of Artificial Intelligence
It’s hard to know what to think about Artificial Intelligence these days. Almost everyone in the industry believes it to be a revolution as deep and as fundamental as the industrial revolution or the birth of the computer. Yet the field seems divided over when we will get to general intelligence and what that will ultimately mean for us. Some believe it will be our greatest invention yet and others that it may lead to our doom.
