×
462
Fashion Jobs
MOLEDRO
Operation Manager
Permanent · NEW DELHI
MOLEDRO
HR &Admin
Permanent · NEW DELHI
MOLEDRO
Brand Manager
Permanent · NEW DELHI
MOLEDRO
sr Fashion Designer / Production Manager
Permanent · NEW DELHI
ADIDAS
Manager Information Security
Permanent · GURUGRAM
ADIDAS
sr. Manager Sales Excellence
Permanent · GURUGRAM
CL GUPTA RETAIL PRIVATE LIMITED
Production Manager Cum Quality Control Manager
Permanent · Noida
UGRAYA FOODS
Production Manager || Agartala (Tripura) || Poultry Feed Industry
Permanent · Agartala
GOVIND KRIPA INFRATECH PVT. LTD.
HR/Telecalling/Sales Manager/Sales Executives/Asst. Sales Manager
Permanent · Jaipur
JUMBO BAGS
Manager- Production (Fibc / Woven Polypropylene Industry)
Permanent · Chennai
ADIDAS
Manager, Masterdata And Product Launch (.Com & Digital Partners), Apac
Permanent · GURUGRAM
ADIDAS
Manager, Digital Backend Operations, Apac
Permanent · GURUGRAM
THE HOUSE OF DEEPTHI LIMITED
Production Manager
Permanent · MUMBAI
MANPOWERGROUP SERVICES INDIA PRIVATE LIMITED
Hiring-Field Sales Manager
Permanent · Chennai
YUTIKA NATURAL
Area Sales Manager (Guwahati)
Permanent · Katihar
LENSKART
Area Operations Manager
Permanent · Chennai
ELECTRONICA FINANCE
Area Sales Manager - Mumbai- Vasai
Permanent · Mumbai
ADIDAS
Manager Learning & Development & Knowledge Management (M/F/D)
Permanent · CHENNAI
D.LIGHT
Hiring For Area Sales Manager | Bihar | d.Light Energy
Permanent · Patna
CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED
Loan Against Securities - Area Sales Manager
Permanent · Chennai
ANAND RATHI GLOBAL FINANCE
Hiring For Area Sales Manager Sme- Lap
Permanent · Mumbai
CURLYFE BIOSCIENCES
Senior Area Sales Manager
Permanent · Ghaziabad
By
Fibre2Fashion
Published
Nov 25, 2016
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Demonetisation to boost tax revenues in long run

By
Fibre2Fashion
Published
Nov 25, 2016

Demonetisation of high currency notes in India is likely to boost tax revenues and result into faster fiscal consolidation in the long term, according to a recent report. However, the move could significantly disrupt the economic activity, affect all sectors of the Indian economy to various extents and lead to a weaker growth in the near term.


Consumption in India is still largely cash-driven, and a move towards digital payments would require a likely gradual change in consumer habits, according to the Moody’s report


Moody’s Investor Services report titled ‘Indian Credit - Demonetisation Is Beneficial for Indian Government and Banks; Implementation Challenges Will Disrupt Economic Activity’ also states that demonetisation of Rs 500 and Rs 1,000 currency notes will result in temporarily weaker consumption and GDP growth.

“Although the measures in the near term will pressure GDP growth and thereby government revenues, in the longer term they should boost tax revenues and translate into higher government capital expenditure and/or faster fiscal consolidation,” said Marie Diron, associate managing director in Moody's Sovereign Group.

“Corporates will see economic activity decline, with lower sales volumes and cash flows, with those directly exposed to retail sales most affected,” said Laura Acres, managing director in Moody's Corporate Finance Group.

Businesses and households will experience liquidity shortages due to the cap on withdrawal amount. There will also be a loss of wealth for individuals and corporates with unreported income as some will choose not to deposit their funds to avoid disclosing their sources, says the report.

The study also states that greater formalisation of economic and financial activity would ultimately help broaden the tax base and expand usage of the financial system, which would be credit positive. Implementation challenges will affect corporates by lowering sales volumes and cash flows.

“In the medium term, the impact on the corporates will depend on how quickly liquidity returns to the system and transaction flows are restored. The government could prevent the same amount of cash returning into the system, in an effort to increase the use of non-cash transactions and digital payments,” says the report.

The overall operating environment for doing business in India will improve with the ease and speed at which payments reach manufacturers and reduce corruption, but would prolong the economic disruption.

Consumption in India is still largely cash-driven, and a move towards digital payments would require a likely gradual change in consumer habits, according to the Moody’s report. 
 

Copyright © 2022 Fibre2Fashion. All rights reserved.