The students of Indian Institute of Management, Raipur have praised Narendra Modi’s move to demonetize Rs. 500 and Rs. 1,000 notes. They are of the opinion that demonetization of currency would have a mixed impact on the economy. It would lead to fall in prices of property and increase cashless transactions.
The students expressed their opinions on demonetization in a panel discussion organised by Finatix, the finance club of IIM Raipur. The students said that demonetization will have an adverse impact on many sectors like realty, banking, e-commerce and IT sector due to liquidity crunch.
Swagat Kumar, a student, said that the NDA government has taken a bold step and regarded it as one of the biggest reforms post the liberalisation era. He further added that the long-term effect of demonetization would be positive with a blow to the parallel economy and unorganised sectors which involve significant in cash transactions.
One of the students expressed that the consumption is likely to go down for the initial few months due to the reduction in the circulation of currency. However, the demand will increase once the circulation of currency resumes to normal levels. The e-payment payment sector is likely to receive a tremendous boost at this moment.
Arkaprabha Bhattacharya, a PGP student, indicated that demonetization would increase the cashless transactions. Companies like Paytm, MasterCard and Visa, will get more benefit as they generate revenue through cashless wallets.
Sumit Srivastava, a PGP first year student, pointed out that economy would suffer in this quarter due to less consumption by public owing to a cash crunch.
Kavisha Agarwal, a PGP second year student, stated that the announcement came as a blow to black money hoarders. The realty sector would witness a fall in prices of property by 20-30 percent in the coming six months, and therefore a boost in sales have been stalled for a while.
Another student exhorted that the impact on automobile sector is likely to be moderate only when a cash transaction is involved.