Demonetization Impact on Jobs
After the implementation of “Demonetization” on 8th December 2016, 7 Business Sectors got affected and facing a major cash flow challenge. Latest news regarding Demonetization Impact on Jobs is getting viral. One month has been passed and no improvement in business sector has been found yet. Impact of demonetization in the lives of businessmen has made a drastic change in their business issues and also in their life styles. Some are feeling positive rather they are facing many problems related to cash flow changes. Since the demonetization of Rs. 500 and 1000 notes has been announced different business sectors got affected. Here we are discussing about 7 Business Sectors Got Affected due to Demonetization
As the government of India has taken a bold step but still question is arising – will it work or not?? As India is going towards cash less more and more day by day, now organization need to pay all wages through electronic means which is a matter of concern to the workers as many of them doesn’t possess any bank account and they don’t know how to use ATM card, debit card. Cash less India strategy has make bad impact on business sectors such as IT, manufactures and other businesses in many different ways let’s discussed Demonetization Impact on Jobs in details:
Demonetization Impact on Jobs
These 7 Business Sectors Got Affected
The automobile sector got severely influenced by demonetization. It has resulted in drop down of sales of large equipments and machinery. However, if this rule continues to exist, it will result in terrible situation of unemployment.
Statement of R Ananda Krishnan, senior vice-president of HR, TVS Motor
“Companies in the manufacturing sector are increasingly grappling with the skill gap issue and are unable to find qualified, right candidates for open positions. Skill development of the enormous talent pool will act as one of the critical levers of growth,”
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Great Indian workforce is a part of this giant Industry. This sector is adversely affected by the consequences of demonization and this can be seen in capital expenditure and cash flow of the industry. Unskilled or semi skilled workers will suffer the most, as due to lack of finance, this industry will cut costs and reduce labour force.
Statement of Vasudevan Narasimha, executive director-HR, KEC International
“There is a compelling need to skill the unskilled labourers in this sector, as otherwise automation is likely to eat away at a major chunk of their jobs. Initiatives like Skill India and greater involvement from companies in skilling their workforce will improve the job outlook,”
As per the report of KPMG which is titled as “Pharmaceuticals”, it is estimated that India’s Pharma market amounts 240,000 crore, which is going to increase in next three years at a growing rate of 12% CAGR. This will surely result in becoming the sixth largest pharmaceutical market worldwide on the basis of its size.
But the smooth functioning of this market is totally based upon the economic conditions of the country (which is totally suffering from demonization) and availability of skill personals these two requirements are affected by a single rule of government.
Statement of Rohit Varma, director-HR and chief people officer at Max Healthcare
“The government’s push to improve affordable healthcare, establish new institutes and medical education will definitely play a pivotal role in the growth of this industry in coming years. The economic environment is quite optimistic and conducive for business as well as employment in this sector,”
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The demonetization Impact on Jobs has put a great impact on the Ecommerce businesses such as Flipkart, Zomato and many others as they make their 60-70% orders on cash on delivery. Since, PM Modi announced to make India cash less this makes fall in COD orders.
Statement of Kunal Sen, senior vice-president, TeamLease
“Ecommerce is maturing as an industry with a better understanding of utilization of costs and resources. More and more retailers are getting on to ecommerce platforms which will boost need for manpower skills at the digital end,”
With a footing step in digitalis India, 3G and 4G networks has taken a pace through fiberisation as the incumbent players are increasing day by day. GSM Association has concluded that by 2020, India is going to be the fourth largest Smartphone market. This will increase the employment opportunities in technical world. But will demonization become Telecom’s backbone? Or the expectation of achievements in future is goanna trashed? Surely the time will bring an answer with it.
Statement of Srikanth Balachandran, global chief human resources officer, Airtel (Telecom)
“We haven’t had any layoffs and hiring will be strong for us. Once there’s productivity improvements in the area of e-KYCs, there will be attrition in those areas and teams — vacancies of which will not be filled,”
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IT | ITeS:
According to statistics report from recruitment and staffing company-Randstad, the IT sector is supposed to grow at increasing growth rate that ranges to 9%. Industrial body Nasscom expects that the sector should add to the previous year’s revenue an amount of $20 billion. But they fail to do so in this year, therefore company seems to suffer in the area of data sciences, algorithm design, cloud computing and few others because of this very step of government.
Statement of Moorthy Uppaluri, CEO
“We foresee at least 75% of the Indian IT/ ITeS companies increasing their headcount in the next six months. The industry is expected to remain competitive, but would do well to remember that value proposition is necessary in order to maintain that edge,”
According to the report given by India Brand Equity Foundation, revenue from consumer durable sector was marked 9.5 billion dollars in the year 2015 and this amount have increased upto12.5 billion dollars, this year. So it is predicted by industry’s experts the Indian FMCG industry will grow 6.7 % in the year 2017.
But this growth is only possible if the industry possess sufficient finance to hire skilled, innovative and highly qualified personals. This has become a tricky task for the industry to achieve its goal and now it can only do so if the banks are highly financialised.
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Statement of Mondelez India
“Hiring is on track. FMCG and consulting continuing to be at the top of sectors across campuses and lateral hire. With the uncertainties now associated with the startup space, FMCGs with an entrepreneurial culture are preferred employers for young talent in sales and marketing,”
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