Imagine a scenario where the ruling party continually outwitted the opposition in its battle campaign against demonetization. The embattled opposition turned to God for help. They prayed to Goddess Saraswati for a boon to outwit the Prime Minister. Heeding the unceasing prayer, the Goddess agreed to twist the Prime Minister’s tongue at the appropriate time to the Kumbhakarna, who received Nidravatvam (sleep) instead of Nirdevatvam (annihilation of Devas) in Ramayana. As Christmas and New Year approached, the Prime Minister wanted to wish the nation in a secular way with ‘Merry Christmas and Happy New Year’. But when the prime minister wanted to utter these words, Goddess played the trick, what was uttered was I wish all Indians ‘Happy crisis and happy new fear’, much to the joy of the opposition.
What are the crises and fears that await us in 2017? Like it or not, let’s prepare for post-demonetization crises and fears. This can be best illustrated in the statement from RSS-affiliated union front, BMS Chairman Baji Nath Rai, who noted that “the demonetization of the 500 and 1000 rupee notes had cost many jobs.” Rai stated on 9 December 2006 that one lakh and thirty five thousand job opportunities have been created against 20 lakh people who have lost their jobs. According to HfS research, the IT sector will lose 6.4 lakh jobs due to automation by 2021.
In the coming years, we can expect more layoffs due to loss-making industries as a result of demonetization-induced low purchasing power parity. The real estate sector is reeling heavily from the shock, as are related sectors such as cement and steel. What about other businesses? As people refuse to split their cash until the uncertainty is over, all luxury, hospitality and travel segments will feel the pinch. In such a scenario, the government should act quickly to fill cash in ATMs, offer swipe card machines at cheaper prices or for free. The government should also initiate budget housing projects for the common man to boost the demand for cement and steel.
What India Inc. expects from the government is to start the infusion of capital in the infrastructure areas to stimulate the general economic activity with proper seriousness. At the same time, there must be proper communication to address the grievance of the different sectors and the common man. To deal with the cash shortage, the government may also think of mobile ATMs for citizens across the country.
More importantly, the government should announce an economic package from the money earned through demonetization. This is important to give hope to citizens. The biggest advantage of the ruling party is a fragmented opposition. People will continue to trust and support the ruling party if the government clearly communicates how they will benefit, how much their waiting is worth, etc. It is nothing more than the lack of communication in this regard creates more uncertainty, crisis and fears to India Inc. The Prime Minister must act fast to shape public opinion, cultivating friends from the opposition and saving the nation.