Recently, the Indian Government announced a demonetization. Prime Minister Narendra Modi created a hustle in India by removing the highest currency denomination. Demonetization has taken place several times in our country before this in the years 1954 and 1978 respectively. However, the impact that the latest demonetization, (announced in the month of November 2016) created was a holistic one. This action was taken to combat black money and printing of duplicate currency which was a major funding source for terrorist activities. In the past few days, we all witnessed the fiscal effects of demonetization on our economy along with which it has also created a huge ruckus in all the sectors essential to run the Indian economy. As far as the education sector is concerned, institutes that are collaborated internationally may face less adversity than local and privately owned institutes comparatively.
I came across these immediate impacts on the education system caused due to demonetization:
Education in itself is a practice of imparting righteous thoughts of humanity, yet the industry has not remained unaffected by various forms of corruption. After the recent demonetization, the education sector has undergone both positive as well as negative changes.
Followed by the education sector, the job industry has also faced drastic changes after demonetization.
Reasons behind demonetization:
It is believed that the limited access to cash these days will force Indian buyers and sellers to utilize the cashless payment gateways. Since the announcement of demonetization, there has been a great hike in credit card and debit card transactions.
Every ecosystem runs on one vital asset that is money. Free flow of capital ensures smooth functioning of the workforce. Similarly, the education sector also majorly depends on monetary resources to function effectively. There are multiple components to these assets in the form of tuition fees, admission fees, and transport charges to name a few. One of the fundamental advantages of demonetization is that it has enabled backward class students to apply for education loans at lower interest rates.
The overnight removal of Rs 500 and Rs 1000 currency notes particularly impacted the part of population that had been indulging in illegal ways of earning money and promoting the practice of terrorist activities in the country. The roots of corruption have widespread across the country which cannot be heaved overnight. Many experts believe that demonetization will gradually be helpful in erasing corruption if a certain amount of consistency is maintained by all of us in following the rules set forward by the Governing bodies.
Demonetization of 2015 was regarded as one of the most breakthrough decisions so far in the history of Indian economy. People have strongly raised their opinions both in support as well as against demonetization. Students really need to focus on this development and pay close attention to every move as there are high chances that they could be asked about it in their examinations.
The increased use of capital for purchases will raise the collection of tax by the Government. This additional tax collection will be then used for the betterment of the public and will be spent on public infrastructure, salaries of teachers, educational means, etc. This one step taken by the Government will wipe out all the shortcomings that our economy has been facing and change the overall face of the Indian economy.
Where many were in support of demonetization, many even criticized the big decision to the core. As of now, what we can do is just sit back and watch things unfold. Whether demonetization will benefit our economy or affect it adversely in the future, only time will tell.