How demonetisation in India will lead to formal sector growth?
The governments will to move from cash to cashless economy after demonetisation will lead to growth in formal sector.
Largely the labourers work in informal sector. They are paid by companies, firms, factories, contractors & kiln-owners in cash.
But in future the govt. may make it mandatory to make payments to workers via cheque or electronic payments.
That is workers will receive their salary in bank account.
♢ It will lead to growth of formal sector as their income will be reflected in the GDP & other indices.
♢ The govt. will have better data on transactions & thus can formulate better policies.
## Other Benefits
1. Based on their salary the workers can get loan from bank accounts.
2. They will no longer have to rely on money-lenders who charge exorbitant rates.
3. They can make better investments, or can easily move to self-employed category from being daily wage workers.
With Great Love,
Er. Amit Yadav