Impact of Demonetization: A Study on Healthcare and Pharmaceutical Industry

It was the eve of 8th November 2016, when an unexpected revolution created history in Indian Economy. India witnessed an astute change in the economy that touched life of each citizen of India. The step toward demolishing the demon i.e. black money and fake currency, Demonetization took place. The Prime Minister, Mr. Narendra Modi, made a national announcement that 500 and 1000 rupee notes would cease to be legal from midnight, to strike the black money hoarders and counterfeit currency suppliers. This innovative and sudden attempt of Government of India within few hours shook each and every person and insecurity grew over the total money amount at home or in bank. The demonetization created hue and cry situation, long ATM queues cancellation of big events, cash crisis etc was evident, but this move was largely welcomed. It claimed to be a ‘masterstroke ’by the government to curb black money marketing. Soon the staggering situation was taken care of by government. The unpredicted move has impacted all industries of the economy, the healthcare and pharmaceutical sectors is one of them. Healthcare Industry being one of India's largest sectors-both in terms of revenue and employment and the Indian pharmaceuticals market being the third largest in terms of volume and thirteenth largest in terms of value, as per a report by Equity Master, can be considered as booming and prospective industries. Health being one of the major concern for people, the influence of this change on this industry calls for understanding. Basically demonetization do not only have effects on the industries in turn will also be impacting the general people in respect of their decision making for consumption. Thus, this invites a proper understanding of the situation and effects of Demonetization on healthcare and pharmaceutical industry to understand and facilitate in any further contingencies.