The cancellation of the legal tender of 1000 & 500 rupees note has come up as the most surprising and unprecedented move from the Government of India. The Narendra Modi Government, which so far was accused of favoring the business class, has left the nation stunned and their opponents looking equally perplexed with this move. Days down the line, we are seeing people, in spite of facing long queue outside banks, hailing the union government’s decision to curb black money and wipe out the fake currency while the opponents are looking for ways to counter the government’s move. Some like Shiv Sena have also called the move as ‘Demonic’ which would result in ‘Financial Anarchy’ in the country.
"Real Estate is the driving force behind the consumption of building materials, interiors products and the need for architectural & interior design services."
On one hand, the move will increase the liquidity flow in the cash strapped banking sector and experts have anticipated as much as 15 Lakh crore to be flowed in that would grease the banking gears which may result in the lower rates of interests particularly for home loans. On the other, the move has also affected the real estate sector where according to the industry experts, a larger percentage of a transaction is done in cash.
Building sector is the driving force behind the consumption of building materials like Cement, Tiles, Paints, Flooring, Wood, Steel etc. Real Estate and Renovations are two major sources for rendering interiors design and architectural services. While small designers & decorators are overloaded with lots of renovation work, as per sources, the mediocre & top designers are suffering the heat of projects being paused or going into uncertainty.
"Though experts believe that all these impacts are short-term and in the long term, there is much gain, it is important to be prepared. Specific understanding of the Building sector is pertinent."
There is no denial to the fact that the current ban on legal tender of 500 and 1000 notes have put the building materials segment on standstill for some time. Surfaces Reporter is in search of the light in this darkness and scopes amidst doubts, to be the torchbearer for many in despair. The rotation in B2B trading has got the worst blow.
However, experts believe that all these impacts are short-term and in the long term, there is much gain.
Surfaces Reporter is researching to understand the current situation and its impact on each pocket. We know that our readers want to understand the current impact and the actual situation of the industry through the opinions of stakeholders from Builders, Architects and B2B Distribution fraternity.
SURFACES REPORTER is coming with an exclusive story on the impact of the discontinuation of old legal tenders on the Building Projects & Building Material industry.
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