It’s been a complete month to the date when PM Modi announced demonetization but the situation of cash crunch, queues at ATMs and banks, unavailability of currency notes in ATM machines and the business sector that has come down hasn’t changed any much. Though the government has taken various steps and decisions post that but still things are lacking somewhere.
According to reports published by the Hindustan Times, demonetisation could take away 4,00,000 jobs. It is all set to reduce India’s economic growth by 1% over the next year.
The ecommerce sector is to be hit the worst by demonetization. So, if you work somewhere in the ecommerce sector, it is time for you to worry. Since almost 70% of the overall ecommerce business deals in Cash on Delivery payment mode, the sector is most likely to get hit by the demonetization move. Firms in the ecommerce sector may release over 2,00,000 pink slips in the next one year, losing almost 20% of their employee count in the next few months only.
Rituparna Chakraborty, co-founder at staffing firm Teamlease Services shared that at present ecommerce firms employ around 1 million people in India. But this number could go down drastically in the coming few months and in the next one year.
At the same time, the companies manufacturing and selling luxury goods would also be affected. The other areas that are going to face the ill-effects of demonetization to the most are real estate, construction and infrastructure businesses.
These sectors may end up losing over 1,00,000 jobs in the coming 12 months. We could see a lot of job losses and absolutely no fresh hiring in the coming months.
In the textiles and garments industry most employees are daily wagers so they can actually be hit hard since they get paid in cash. Slow sales and pressure on liquid cash availability may result in stretched payments, which can further result in the industry losing a large number of workers.
The government’s move to withdraw and replace high-denomination currency notes has come with its own ups and downs, pros and cons. While it would bring some benefits, it has also brought a number of loses in the short run. Let’s see what’s more to come and by when do we get a better hold on the situation.