Impact of Demonetisation on Construction Industry

International Journal of Economics and Management Studies

© 2017 by SSRG - IJEMS Journal

Volume 4 Issue 1

Year of Publication : 2017

Authors : S.Radhakrishnan, Dr.K.G.Selvan, Dr.S.Senthil Kumar

10.14445/23939125/IJEMS-V4I1P104

How to Cite?

S.Radhakrishnan, Dr.K.G.Selvan, Dr.S.Senthil Kumar, "Impact of Demonetisation on Construction Industry," SSRG International Journal of Economics and Management Studies, vol. 4,  no. 1, pp. 24-27, 2017. Crossref, https://doi.org/10.14445/23939125/IJEMS-V4I1P104

Abstract:

Demonetisation of Rs. 500 and Rs. 1,000 notes by the Government of India is a very bold act and welcoming one. The hoarding of money by unscrupulous people led to double pronged impact on the economy. First the prices of commodities have gone up quite steeply due to free flowing of high value currencies by a handful of few and second the purchasing power of money in real terms has slid badly to common people who are the majority and in whose possession the savings is very reasonable. To say succinctly, the high value currencies were stored only in the form of Black Money. Pumping of this was used for activities which are antisocial and on things which would shoot up prices of essential commodities. Right from vegetables to gold, prices went sky high. A majority of black money or hoarded currencies was spent or invested in Real Estate Sector. In fact, this sector is more commonly known as the platform for safe spending of hoarded high value denominations. Rightly, the bold act of the Government has brought in very positive results in the Economy.

Keywords:

Rightly, the bold act of the Government has brought in very positive results in the Economy.

References:

1) How demonetization is affecting construction industry in India – Quora.
2) Impact of Demonetisation on various sectors and the economy – JR Financial dated 10/11/2016.
3) Demonetisation: Construction workers return home as cash crunch heightens – Reuters 12/12/2016
4) Impact of demonetization on Residential Real Estate
5) Demonetisation: Workers abandon building sites – head home
6) Demonetisation effect: Massive layoffs, Tamilnadu Construction workers have no cash or food
7) 50 days after demonetization, real estate deals remain few and far between
8) www.financial express.com/India News/demonetization effect massive layoffs in construction sector in tamilnadu/450324
9) Prices fall as demonetization hurts Chennai’s real estate
10) Demonetisation: Housing prices to drop upto 30% wiping Rs. 8 lakh crores