Jan 24, 2017
The principled younger earners of India today prefer to be transparent, writes Anil Pharande, Chairman - Pharande Spaces.
New Delhi: Digitization is the future - but until now, it had been the Indian government itself that stood against the future by encouraging cash payments and levying heavy charges on digital marketplaces. Invariably, the merchant discounts rate (the fee that is supposed to be paid to the banks) was passed onto the end customer.
The announcement of demonetization of high-value currency notes certainly came as a shock to the masses, but it seems that people have not only understood the reason behind the move but are also offering full support to this change. This is especially true for the younger earners and spenders in our economy. There are several favorable aspects to the younger generation that makes demonetization a welcome move at this point in time for our economy.
Firstly, the current generation is by and large rejecting many of the concepts that the previous generations believed in. Things like hoarding of assets, black money and tax evasion wherever possible are by and large unacceptable to the young contributor to the economy today. In fact, today it is just the opposite.
The younger generation is more in favor of spending and putting their income back into the flow, rather than keeping it aside for emergencies. They believe in using credit cards and similar financial tools that don't involve hoarding. The principled younger earners of India today prefer to be transparent taxpayers rather than find ways to evade tax and hide their income.
They know and appreciate that that their tax contributes towards the betterment of the nation and assisting the lesser-privileged. This is a highly responsible generation.
Secondly, this highly tech-savvy generation knows all about digital payments. A twenty-five-year-old of today is more predisposed and equipped to making digital payments than people from the previous generation. They are more comfortable with mobile wallets than with carrying cash. The rapid penetration of smartphone technology and online payment gateways has also helped build trust, while offering convenience.
Thirdly - and most importantly - this is a generation stands firmly against any form of corruption. It’s not just about making your own lifestyle comfortable anymore but growing with the nation. They fully support the recent demonetization move’s primary intention to weed out and expose corruption in India.
They believe that:
•Demonetization will equip authorities with the tools to track down individuals and organization who hold unaccounted cash and evade tax. With the high-value currency note ban, all cash hoarders now are forced to put their cash back in the economy and make it accounted for. The younger generation is a staunch supporter of such a level playing field, and vehemently opposes all forms of inequality
•Black money has always been the prime funding for all kinds of illegal activities like gambling, drug use and trafficking, terrorism and inflated market pricing. This generation’s stand against such activities is very much on record
•Demonetization will curb tax evasion and now everyone, howsoever rich or resourceful, will have to pay their taxes in full. It will not be just the middle class that will be contributing to tax-funded projects like infrastructure development, education, hospitals, schools and other such moves towards making a better and equal society. A big thumbs up from the younger generation.
As India moves more and more towards digital currency because of demonetization, the ensuing boost to online commerce will also encourage all kinds of startups that the young Indian are working or investing in. Moreover, people with lawful and accounted-for money will have nothing to fear – and the younger generation is all about living their lives free of fear - and free to explore life’s endless possibilities.
Anil Pharande is Chairman of Pharande Spaces, a leading construction and development firm that develops township properties in West Pune.