As the winter season drags on to a mixed range of emotions and feelings for all people in all walks of life with regard to recent demonetization of high denomination currency notes of 500 & 1000, even the best B school in India cannot be left out of this vortex of fascinating happenings. As the central government recently announced the demonetization of high denomination currency notes of and introduced high security feature denomination currency notes of 2000 rupees, it has left an array of emotions. Therefore, how can this step shape and affect the present and future of business and management schools like JKBS with regard to performance in the short and long term?
There is a serious need to study and analyze the Indian economy over the last few months leading up to the path breaking strategy of strict fiscal discipline. Though there are mixed feelings to these steps from welcome, opportune and utter dismissal there are still lessons that even the best B school India can take away.
It is important to note, that these are uniquely interesting times given the social, economic and political consequences they could engender or bring forth. Regardless of some seen or unforeseen calculations and predictions there are bound to be results in the affirmative or otherwise.
Expectations / Possibility of Government Demonetization Policy visa avis National Economic Interest
As an institution committed to equipping future business leaders through capable of response to challenges in emerging markets with sustainable evolution, growth and innovation these are some potential emergent lessons from the recent demonetization policy for JK Business school.
1-Flush out excess hidden ‘black money’ (undeclared, unaccounted and untaxed ill gotten wealth)
2-Simplify tax payment with simple, clean and accountable tax regime
3-Ease excess bureaucratic hindrances to tax declaration and payment without fear of repercussions on declaration
4-Increased / stricter accountability and stronger advocacy for business leadership and management
5-Widen India’s income tax base as a result of modified and simplified methods and means to pay tax
6-Enforce stronger corruption control measures in both public and private organizations
7-Curb funding to anti-national elements, money launderers including potential terrorists
8-Reduce inflationary tendency on the economy and suck out counterfeit currency
Even though there are evident signs of people feeling burdened and stressed from the governments step yet there are still more supportive voices for its fiscal move in the best interest of the country. India is largely a cash economy meaning most transactions are still done in cash payments. It remains to be seen how this momentum will reinvigorate the rupees value as well as ensure that enough tax is paid and collected to sustain the central government’s development budget and agenda as opposed to relying on the swelling national deficit through constant borrowing.