Airo International Research Journal Volume XIV, ISSN: 2320 ...€¦ · Shikha Gupta, Research...
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Airo International Research Journal
Volume XIV, ISSN: 2320-3714 January, 2018 UGC Approval Number 63012 Impact Factor 0.75 to 3.19
1
Airo International Research Journal
Volume XIV, ISSN: 2320-3714 January, 2018 UGC Approval Number 63012 Impact Factor 0.75 to 3.19
2
EFFECTS OF DEMONETIZATION ON THE BUSINESS
(A CASE STUDY OF AGRA REGION)
Shikha Gupta, Research Scholar
Dayalbagh Educational Institute (Deemed University), Agra
Prof. Pramod Kumar, Head Dept. of Accountancy & Law
Dayalbagh Educational Institute (Deemed University), Agra
Declaration of Author: I hereby declare that the content of this research paper has been truly made by me including the title of the research paper/research article, and no serial sequence of any sentence has been copied through internet or any other source except references or some unavoidable essential or technical terms. In case of finding any patent or copy right content of any source or other author in my paper/article, I sha ll always be responsible for further clarification or any legal issues. For sole right content of different author or different source, which was unintentionally or intentionally used in this research paper shall immediately be removed from this journal and I shall be accountable for any further legal issues, and there will be no responsibility of Journal in any matter. If anyone has some issue related to the content of this research paper’s copied or plagiarism content he/she may contact on my above mentioned email ID.
ABSTRACT
On 8th
November, 2016 the Central Government banned ₹ 500 and ₹ 1000 notes as a legal
tender. As per RBI’s Annual Report for the Financial Year 2015-16, ₹ 500 and ₹ 1000
notes jointly form 86.4% of the total value of the currency of India. With one strict decision of
central Government, Indian economy lost 86.4% of its monetary base. So it was the time of
currency crises the whole Nation was facing a situation of unease. In the days following the
demonetisation banks had shortage of cash and ATMs across the country were out of cash.
From a labour getting wages on daily bases to big businessmen, everyone was suffering from
liquidity crises. In order to exchange old currency, people had to stand in large queues for
several hours. Demonetization took place in order to achieve some objectives, however the
nation suffered but there was some purposes behind demonetization decision these were: to
curb black money, corruption and counterfeit notes, moreover the Government wanted to
lead the society towards digitalization. In this paper the researcher has tried to know the
perception of businessmen of Agra region towards demonetization. For the purpose of getting
the views of businessmen of Agra region, a questionnaire has been designed and served to 40
businessmen of Agra out of which 20 respondents are from Petha Units and 20 respondents
are from Shoe Units (both are the leading businesses of Agra). To know the strength,
weakness, opportunities and threats of demonetization, the researcher has done a SWOT
analysis on demonetization.
Key words: Black Money, Central Government, Counterfeits, Demonetization, Petha Units,
Shoe Units, SWOT analysis.
INTRODUCTION
Black money is like a curse for any nation.
It hampers the development and growth of
any nation as it leads to lower per capita
income, lower GDP and higher poverty
and unemployment. As we know there is
high amount of black money and
counterfeit notes in India thus, Indian
Government took the challenge to make
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the economy free from black money and
counterfeits. The Government took several
steps to curb black money like establishing
Special Investing Team (SIT), opening
accounts under Pradhan Mantri Jan-
DhanYojana (PMJDY), investing foreign
accounts. Finally a drastic decision of
demonetization was taken by central
Government of India on 8th November,
2016, which exaggerated the economy of
India overnight. On 8th November, 2016
the Central Government banned ₹ 500
and ₹ 1000 notes as a legal tender. As per
RBI‟s Annual Report for the Financial
Year 2015-16, ₹ 500 and ₹ 1000 notes
jointly form 86.4% of the total value of the
currency of India. With one strict decision
of central Government, Indian economy
lost 86.4% of its monetary base. So it was
the time of currency crises the whole
Nation was facing a situation of unease. In
the days following the demonetisation
banks had shortage of cash and ATMs
across the country were out of cash. From
a labour getting wages on daily bases to
big businessman, everyone was suffering
from liquidity crises. In order to exchange
old currency, people had to stand in large
queues for several hours.Demonetization
took place in order to achieve some
objectives, however the nation suffered but
there was some purposes behind
demonetization decision these were: to
curb black money, corruption and
counterfeit notes, moreover the
Government wanted to lead the society
towards digitalization. In this paper the
researcher has tried to know the perception
of businessmen of Agra region towards
demonetization. For the purpose of getting
the views of businessmen of Agra region, a
questionnaire has been designed and
served to 40 businessmen of Agra out of
which 20 respondents are from Petha Units
and 20 respondents are from Shoe Units
(both are the leading businesses of Agra).
To know the strength, weakness,
opportunities and threats of
demonetization, the researcher has done a
SWOT analysis on demonetization.
REVIEW OF LITERATURE
Dr.Ritu Bhattacharyya, SampurnaNand
Mehta (2016), did a study on small traders
of Navi Mumbai and collected their views
through questionnaire and concluded that
demonetization has worst effected the
small traders. Jai Bansal (2017), stated in
his study that demonetization has affected
the various sectors of India and GDP of
India decreased slightly in the year 2016-
17 but it is not necessary that it will be
same inn future. He suggested
demonetization should be repeated
periodically. Ms.Asra Fatima and
AnwarulUloom (2017), stated in their
paper that demonetization taken place for
several reasons however it was not solved
completely and it will be unfair to expect
so, as it was just a first step.
Vijayaveelamegavarman, Durga and
K.Sundaramoorty (2017), suggested in
their study that in the long run, the
economy can get delight from the
lessening of the dark money, which can
bring about higher gathering, higher
business environment, less defilement
straightforwardness. Dr.D.Anbugeetha and
Mr. R.Mahaveer Jain (2016), mentioned
that next some months are going to be
disturbing and painful, but the future will
be better. Almost all the people are
showing relatively calm, positive and
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mature understanding of the after effect.
SasyakPattnaik (2016), stated that
demonetization is beneficial for Indian
economy and its growth. It may not
control the amount of black money in the
nation directly, but nonetheless, it is
beneficial for the Indian economy in the
future. Dr.S.Balamurugan and
B.K.Hemalatha (2016), concluded that
medium and large scale business are
unaffected to such ban, many small-size
commercial establishments are deeply
affected by such sudden move by the
government. K. Veerakumar (2017), stated
that up to some extent the objectives of
demonetization have been met out as Some
people are depositing currency notes in
excess of specified limits directly into
bank accounts has showed the
unaccounted income. Digitalization has
also been motivated by demonetization.
Sachin Abda (2016), suggested that
demonetization is considered with some
advantages and disadvantages in various
sectors in short run but in long run it
definitely will have positive impact in
controlling black money and fake money.
NEED/ SCOPE OF THE STUDY
As far as demonetization is concerned a
number of studies have been conducted
since demonetization is a recent event and
as far as we know, there is no published
study, which has examined the effect of
demonetization on the business of Agra
region. Hence, it is essential to conduct a
comprehensive study to examine this
issue.
OBJECTIVES OF THE STUDY
1. To examine the effect of
demonetization on the sale and
profit of selected businesses.
2. To know the perception of
businessmen of Agra region
towards demonetization.
3. To conduct a SWOT analysis on
demonetization.
HYPOTHESIS:
Ho1: There is no significant effect of the
demonetization on the profit and sales of
selected businesses.
Ho2: There is no significant difference
between the perceptions of businessmen of
Petha Units and Shoe Units of Agra region
towards demonetization.
RESEARCH METHODOLOGY
Sampling Design
Sample size: For attaining the
objective, a questionnaire has been
designed and served to 40 businessmen
of Agra region out of which 20
respondents are from Petha Units
which includes, 10 Manufacturing
Petha Units and 10 Trading Petha
Units and 20 respondents are from
Shoe Units which includes, 10
Exporting Shoe Units and 10 Domestic
Shoe Units. For analysing the effect of
demonetization on profit and loss of
selected businesses, a financial report
of last quarter (Jan-March) of the
financial year 2015-16 and 2016-17 of
all selected units have been taken into
consideration.
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Sample selection criteria:This study
has been carried out on Petha and Shoe
Units as Petha and Shoe are the most
prominent industries of Agra region.
Statistical Design
Sources of the data:The financial
information has been collected using
the secondary source from the selected
businesses. The data for knowing the
perception of businessmen of Agra
region has been collected from the
primary sources.Data for SWOT
analysis has been collected from
secondary sources i.e. newspaper,
magazines, articles etc.
Analysis of data: T-test and
percentage analysis have been used to
analyse the data.
SALE AND PROFIT ANALYSIS
The following areconsolidated sale and
profit (approx.) of the last quarter of the
financial year 2015-16 of all the selected
20 Units (10 Manufacturing Petha Units
and 10 Trading Petha Units,10 Exporting
Shoe Units and 10 Domestic Shoe Units)
have been compared with the sale and
profit (approx.) of thecorresponding period
of quarter i.e. last quarter of the financial
year 2016-17.
Petha Units Shoe Units
Jan-Mar, 2015-16 Jan-Mar, 2016-17 Jan-Mar, 2015-16 Jan-Mar, 2016-17
Sales 1.80 Crore 1.24 Crore Sales 341 Crore 330 Crore
Profit 26.1 Lakh 15.5 Lakh Profit 61.38 Crore 57.75 Crore
INTERPRETATION
On seeing the above table it can be
observed that sales of Petha Units have
been reduced by 31% and profits have
been reduced by 40.61%. On the other
hand sales of Shoe Units have been
reduced by 3.22% and profits have been
reduced by 5.91%. is can be clearly seen
that Petha Units are more effected due to
demonetization in comparison to Shoe
Units as, in the sample there are 10 Export
Shoe Units which are unaffected in respect
to demonetization. So, the null hypothesis
(Ho1) gets rejected as, there is significant
effect of the demonetization on the profit
and sales of selected businesses.
SWOT ANALYSIS
STRENGTH
Black Money: The major aim behind the
decision of demonetization was to curb
black money from the economy. As the
Finance Minister ArunJaitely said “the
goal of demonetization is to clean
transactions, (to) clean money.”Black
money operators run parallel economy
which weakened the foundation of the
nation. With one stroke Prime Minister
chocked the huge supply of black money
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Volume XIV, ISSN: 2320-3714 January, 2018 UGC Approval Number 63012 Impact Factor 0.75 to 3.19
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in the country. But up to a limited extent
the Government was successful to curb
black money from the economy as a
limited portion of black money is being
held in cash and rest of the portion of
black money is held in other forms like
properties, investments etc. However this
was a great decision of the Government to
curb black money. Due to demonetization
major part of black money either be
deposited into banks or be destroyed.
Counterfeit Notes: The decision of
demonetization aimed at eliminating
counterfeits from the economy asa parallel
economy of fake currency has been
running in India for so long and these
counterfeit notes has been circulated
widely. The counterfeits float in the
economy, devalues the real worth of
Indian currency. This is a well-known fact
that Pakistan has been printing fake Indian
currency, which weakened the strength of
Indian economy. Demonetization has
hardly hit the counterfeits, as per the
experts these new notes of ₹ 500 and
₹2000 are very tough to replicate due to
its advance security features. So the
creators of counterfeits have no option left
with them.
Crackdown on Terror: The terror
activities majorly financed by halawa
transactions and counterfeits.
Demonetization has closed the route of
terror financing, which instantly resulted in
no stone pelting on the security force of
Kashmir as the hawala transactions and
counterfeits has been chocked up through
demonetization.
Cashless Economy: Through
demonetization decision PM Modi tried to
make the economy cashless as the cashless
economy will lead to more transparent
economy as well as the corruption will be
diminished and the money in circulation
can be traced easily. Demonetization was
closely linked with the Government‟s core
goal i.e. Digital India Mission.
Planned Strategy: Demonetization is said
to be a planned strategy as this decision
was in continuation of connecting the dots.
First step was to establish a SIT (Special
Investing Team) on black money then in
the second step i.e. Pradhan Mantri Jan-
DhanYojana (PMJDY),PM Modi tried to
make access bank accounts to every citizen
of India. The next step was inspection of
the foreign accounts and then followed by
the deadline of 30th
September, 2016 for
declaration of black money. Finally the
huge and drastic step of demonetization
was taken by PM Modi to curb the left out
black money.
Real Estate Cleaning: Real estate
industry is said to be an industry being
made on black money. The demonetization
decision targeted on curtailing the black
money from the real estate industry it will
also lead in property price reduction in
near future.
Dues Cleared by Defaulters: At the time
of demonetization defaulters cleared their
dues of various bills like electricity,
telephone etc. and taxes like income tax,
house tax, water tax etc. Even some people
paid advance income tax as per Times of
India data shows growth of 41.79% in
advance tax collection of personal Income
Tax over year ago period i.e. 2015-16.
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Volume XIV, ISSN: 2320-3714 January, 2018 UGC Approval Number 63012 Impact Factor 0.75 to 3.19
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WEAKNESS
Consumption Affected: Due to
demonetization the rate of consumption
got down immediately, as the consumption
decreased the whole business cycle got
affected temporarily.
Slumped the Growth Momentum: As
the consumption adversely affected it lead
to decrementin production, income,
investment thus the overall growth
momentum got affected.
Liquidity Crises: Most of the people use
cash for their daily needs and at the time of
demonetization people did not have
currency with them. The businesses of
India also suffered from liquidity problem.
But this crisis was for a short period of
time. Now there is sufficient flow of
currency in the market.
Welfare Loss of Labour Class: A huge
number of people are working on daily
wages basis.Due to demonetization
business suffered from liquidity problem
thus they were not in position to pay the
labour on daily basis. So it was a welfare
loss of labour class people.
Shortage of Currency: It was the time
when ATMs were out of cash even banks
did not have sufficient cash as the
Government was not able to print new
currency as per the need of the public. At
that time after standing in a long queue for
long hours it was not necessary that all the
people will get new currency in exchange.
GDP Affected:After demonetization
whole economy slumped down for a short
period of time as a result the GDP of India
also declined. As per Hindustan times in
the fourth quarter of 2016-17 GDP growth
slowed to 6.1% from 7% in the preceding
quarter.
Small Businesses Suffered: The small
businesses which are working only on cash
suffered the most due to demonetization.
Misuse of Jan-DhanYojana Accounts:
Through Pradhan Mantri Jan-DhanYojana
(PMJDY), PM Modi tried to make access
bank accounts to every citizen of India but
at the time of demonetization some smart
people used the Jan-DhanYojana Accounts
of poor and innocent people to deposit
their black money.
OPPORTUNITY
Decline in Open Crimes: When the
society will go digital then the amount of
open crimes will be lessen as cash
facilitates crimes and digitalisation makes
the transactions more transparent. When
people will have limited cash in hand there
will be less number of crimes.
Cash Less Society: Demonetization
motivated cash less transactions which is a
huge step towards digitalisation and this is
leading towards the dream of digital India.
Future GDP growth: In spite of short
term adverse effects of demonetization, it
will lead to economic growth of India so in
upcoming years the rate of GDP will rise.
Financial Inclusion: With the help of
Pradhan Mantri Jan-DhanYojana, PM
Modi tried to make access bank accounts
to every citizen of India and when
demonetization took place mostly people
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had their accounts in banks so it became
easy to deposit money into accounts. There
is a great possibility that these people will
use their accounts in future also and will
contribute in the development of the
society as well.
More Transparency: As the societyis
going towards digitalisation, it will make
the economy more transparent. The
Government will be able to detect every
kind of fraud and crime.Recently Finance
Minister ArunJaitely announced to link
Aadhar with securities transactions.
Attract Foreign Investment: When
economy of India will become more
transparent and credible then it will attract
more foreign investments, which will
definitely help in the development of the
nation.
Decrease in Property Price: It is
expectedthat the property prices will jump
down as we all know that most of the
black money is being invested in the real
state and after demonetization people
won‟t be able to invest their unaccounted
income into real state so the developers
supposed to reduce the property prices.
Increment in the number of ITR Filed:
Afterdemonetization it is expected that
there will a jump in the number of ITR
filed which can be seen also as per Times
of India and Economic Times ITR filed by
individuals for 2016-17 grow 25.3% with
over 2.79 crore returns till 5th
August,
2017. This shows an increase of 24.7% as
compared to the growth rate of 9.9% in the
previous year. As per CBDT “The
substantial number of new taxpayers have
been brought into tax net subsequent to
demonetization.”
Eye of CBDT on Tax Evaders: As per
Times of India the CBDT cracked down
on evaders as part of „Operation Clean
Money‟ after November 2016. It identified
18 lakh people who made bank deposits of
old ₹ 500 and ₹ 1000 notes after the
November 8 demonetization
announcement in amounts that didn‟t
match with their income profiles.
Lower Interest Rates for Loans: After
demonetization it is expected that the
interest rates for proving loans will be
reduced as banks have more liquidity due
to high deposits by people so, it will be a
good opportunity for the people who are
seeking for loans.
THREATS
Arrival of Counterfeits Again: In spite of
advance technology used in the new
currency i.e.₹ 2000 and ₹ 500 notes,
there is a threat that maker of counterfeits
may crack this technology again.
Uneducated People: About 25% of
people of India are uneducatedso great
efforts are supposed to be enforced on
these people to make them familiar with
the digital economy.
Nature of Resisting Change: The people
of India have nature of resisting change,
wherever new technology or upgraded
technology comes people take time to cope
up with it or they do not upgrade with that
technology so, there is a great threat that
people of India will not go for
digitalization.
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Volume XIV, ISSN: 2320-3714 January, 2018 UGC Approval Number 63012 Impact Factor 0.75 to 3.19
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Black Money in other Form: Along with
cash black money can be kept in other
forms also i.e. real state, gold etc. so there
is a big threat that instead of having black
money in cash people will find some other
way to keep it.
Cyber Threats:However digitalisation is
a sign of development of the nation but, it
brings a threat of cybercrime with it. So
high cyber security need to be maintained
to avoid cybercrimes.
ANALYSIS OF QUESTIONNAIRE
The responses have been collected from 40
respondents which contains 20 Petha Units
of Agra which includes, 10
manufacturingPetha Unit and 10 trading
Petha Unit and 20 Shoe Units of Agra
which includes, 10 Exporting Shoe Units
and 10 Domestic Shoe Units. The analysis
of questionnaire is as follows:
All the respondents are male. 22.5% of the
respondents lies under the age 30-40 years,
32.5% of the respondents lies under the
age 40-50 years and 45% of the
respondents lies under the age more than
50 years.
1. Due to demonetization the liquidity of your business suffered in last six months i.e.
October to March 2016.
As it can be seen in the above chart 30% of
respondents are agree and 37.5%of
respondents are strongly agree that their
business is still suffering from liquidity
crises, this category mainly includes the
Petha Units. 15% of respondents are
disagree and 17.5% of respondents are
strongly disagree, this category mainly
includes Exporting Shoe Units as their
mostly transactions are through net
banking.
2. The production of your business declined due to demonetization in last six months
i.e. October to March 2016.
37.50%
30%0%
15%
17.50% Strongly Agree
Agree
Neither Agree Nor DisagreeDisagree
Strongly Disagree
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As it can be seen in the above chart 22.5%
of respondents are strongly agree and
37.5% of respondents are agree with the
above statement as mainly Petha Units
faced decline in production in last six
months. 17.5% of respondents are disagree
and 22.5% of respondents are strongly
disagree, this category mainly includes
Exporting Shoe Units as the production of
their business did not affected much due to
demonetization.
3. There is a fall in attendance rate of labour in the factory due to demonetization.
As it can be seen in the above chart 22.5%
of respondents are agree and 32.5% of
respondents are strongly agree that in their
businesses there is fall in attendance of
labour this category mainly include Petha
Units.
4. It is hard to pay labours in digital form or through cheque.
As it can be seen in the above chart 30% of
respondents are strongly agree and 27.5%
of respondents are agree that they find it
hard to pay their in digital form, this
22.50%
37.50%
0%
17.50%
22.50%
Strongly AgreeAgree
Neither Agree Nor DisagreeDisagree
Strongly Disagree
32.50%
22.50%
0%
20%
25%
Strongly Agree
Agree
Neither Agree Nor DisagreeDisagree
Strongly Disagree
30%
27.50%
0%
20%
22.50%
Strongly Agree
Agree
Neither Agree Nor Disagree
Disagree
Strongly Disagree
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category mainly includes Petha Units as
their mostly labours are on daily wages
basis and they pay their labours in cash.
5. There is decline in the number of customer in the market due to demonetization.
The decline in the number of customers is
mainly because the customers have lack of
liquidity. 25% of respondents are strongly
disagree and 17.5% of respondents showed
their disagreement, this category mainly
include Export Shoe Units as they export
their product to international markets and
in international markets there is no
liquidity crises due to demonetization in
India so, the sale was unaffected.
6. There is decline in the turnover of the business in last six months i.e. October to
March 2016.
As it can be seen in the above chart 17.5%
of respondents are agree and 40% of
respondents are strongly agree that in last
six months they face decline in the
turnover as production and number of
customer both reduced which resulted in
decline in turnover.
7. Demonetization successfully curbed black money from the economy.
42.50%
15%
0%
17.50%
25%
Strongly Agree
Agree
Neither Agree Nor DisagreeDisagree
Strongly Disagree
40%
17.50%
0%
25%
17.50%
Strongly Agree
Agree
Neither Agree Nor DisagreeDisagree
Strongly Disagree
32.50%
22.50%
0%
20%
25%
Strongly Agree
Agree
Neither Agree Nor DisagreeDisagree
Strongly Disagree
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32.5% of respondents are strongly agree
and 22.5% of respondents are agree that
the Government successfully curbed black
money with help of demonetization where
as 45% of respondents showed their
disagreement for the same. The owner of
PanchhiPetha Store said in the interview
that the clever and smart people did not
showed their black money they settled
their black money here and there.
8. Demonetization effectively made the society cashless.
As it can be seen in the above chart 35% of
respondents are strongly disagree and 25%
of respondents are disagree that
demonetization did on made the society
cashless effectively.However the society
has started moving towards cashless
society but still huge efforts are need to be
made to be a complete cashless society.
9. Due to demonetization tax evasion is eliminated or reduced.
As it can be seen in the above chart 60% of
respondents are strongly agree and 27.5%
of respondents are agree that due to
demonetization tax evasion is reduced, this
can been seen asITR filed by individuals
for 2016-17 grow 25.3%.
10. Due to demonetization your business, started doing cash less transactions including
payment to labours.
17.50%
22.50%
0%25%
35%
Strongly Agree
Agree
Neither Agree Nor DisagreeDisagree
Strongly Disagree
60%
27.50%
0%
5% 7.50% Strongly Agree
Agree
Neither Agree Nor Disagree
Disagree
Strongly Disagree
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As it can be seen in the above chart 15% of
respondents are disagree and 10% of
respondents are strongly disagree that they
did not started doing cash less transactions
due to demonetization as owner of
PanchhiPetha saidin the interview that just
after demonetization they started doing
cashless transactions like they kept Paytm
machine and Swap machine but for a very
short period customer paid through these
machines but later on they came on cash
payments. However these Petha Units have
started making payments in digital form.
Some of the Shoe Units are already
indulge in cashless transaction and some of
the Units have started cashless
transactions.
11. Demonetization brought transparency in the businesses.
As it can be seen in the above chart 15% of
respondents are agree and 67.5% of
respondents are strongly agree that
demonetization brought transparency in
the businesses. Manager of Virola
International said in the interview that
demonetization brought transparency in
the businesses and in future more
transparency will be there in businesses.
12. The market has come over from the adverse effects of demonetization.
45%
30%
0%15%
10%
Strongly Agree
Agree
Neither Agree Nor DisagreeDisagree
Strongly Disagree
67.50%
15%
0%7.50% 10% Strongly Agree
Agree
Neither Agree Nor DisagreeDisagree
Strongly Disagree
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As it can be seen in the above chart 12.5%
of respondents are disagree and 45% of
respondents are strongly disagree that the
market has not came over from the adverse
effects of demonetization. Owner of
PanchhiPetha store stated in the interview
that there sale has been reduced to
80%,even at the time of recently passed
two festivals i.e. RakshaBandhan and
Janmashtami there was no such sale as it
used to be.
13. Demonetization will slump the overall growth momentum for long term.
As it can be seen in the above chart
majority of respondents are disagree that
demonetization will slump the overall
growth momentum for long term but there
are some respondents who showed their
disagreement for the same. Owner of Agra
Petha Store said in the interview that
approximately 70-80 factories of petha got
closed due to demonetization.
14. Demonetization will lead to betterment of economy of India.
22.50%
20%
0%12.50%
45%
Strongly Agree
Agree
Neither Agree Nor Disagree
Disagree
Strongly Disagree
12.50%
7.50%
0%
27.50%52.50%
Strongly AgreeAgree
Neither Agree Nor DisagreeDisagree
Strongly Disagree
45%
40%
0%
5%10%
Strongly Agree
Agree
Neither Agree Nor DisagreeDisagree
Strongly Disagree
Airo International Research Journal
Volume XIV, ISSN: 2320-3714 January, 2018 UGC Approval Number 63012 Impact Factor 0.75 to 3.19
15
As it can be seen in the above chart 45% of
respondents are strongly agree and 40% of
respondents are agree that demonetization
will lead to betterment of economy of
India. Manager of Tez Shoe Company said
in the interview that this was a very right
decision of Central Government and it
should be repeated at regular intervals like
in every 4-5 years then the Government
will be able to curb the black money from
the economy more effectively.
ANALYSIS OF HYPOTHESIS
Here the samples are with the same
variance so, two tailed t-Test assuming
equal variance will be applied.
t-Test: Two-Sample Assuming
Equal Variances
Variable
1 Variable 2
Mean 3.696429 3.003571429
Variance 1.249794 1.474024725
Observations 14 14
Pooled Variance 1.361909 Hypothesized Mean
Difference 0
df 26 t Stat 1.570792
P(T<=t) one-tail 0.064161
t Critical one-tail 1.705618 P(T<=t) two-tail 0.128322
t Critical two-tail 2.055529
Fig 1: output from excel data analysis tool
FINDINGS: Since the p-value is 0.12
which is more than the level of
significance 0.12>0.05 so, the null
hypothesis (H02) will be accepted,
concluding that there is no significant
difference between the perceptions of
businessmen of Petha Units and Shoe
Units of Agra region towards
demonetization.
CONCLUSION
However demonetization brought uneasy
for people of India but, we can‟t ignore it‟s
positive impacts as in this financial year
i.e. 2016-17 ITR filed by individuals grow
25.3%, society started being cashless,
demonetization brought transparency, up
to some extent black money curbed from
the economy, counterfeit notes are
removed from society so, along with the
unease of some months demonetization
brought brighter future with it. If we see
the analysis of questionnaire it can be
observed that yes off course businessmen
of Agra region suffered and still suffering
from the adverse effects of demonetization
but they are not demotivating
demonetization and due to demonetization
they are visualising their country‟s future
more economic healthy, more transparent,
more progressive and clean from black
money and counterfeit notes. Finally we
can say that demonetization and other
revolutionary steps will lead to our country
towards peak not immediately but
definitely.
Airo International Research Journal
Volume XIV, ISSN: 2320-3714 January, 2018 UGC Approval Number 63012 Impact Factor 0.75 to 3.19
16
SUGGESTIONS
Although it is difficult to eradicate
black money completely from the
economy but this demonetization
decision could not
successfullymade the economy
black money and counterfeit notes
free, so demonetization should be
repeated periodically like in every
4-5 years, to curb the black money
and counterfeit notes from the
economy more effectively.
To motivate the society towards
cashless economy the Government
should enable easy and secure
banking.
There should be sufficient branches
and ATMs of banks, as thousands
of villages are still suffering from
lack banks so, banks should be in
the reach of every citizen of India.
It is noteworthy that we are leading
towards digitalisation, there is very
high risk of cybercrime so,
extraordinary cyber security should
be enforced by the Government.
Training programs on financial
literacy and digitalization should be
conducted at a large level to make
the people familiar with the
digitalization.
The Government should facilitate
easy access of network services so
that, the network facilities as the
basic requirement of digital
economy would be in reach of
common man.
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Anbugeetha, D. and Jain, R. (2017).
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