Many people are still lining up outside banks in India because of the demonetization policy that was mandated a month ago. The demonetization resulted to old currency notes with higher denominations to be out of value. The impact is quite huge on the construction business because people have suspended their plans for home renovations and there are no construction works coming in.
It is common trade that payments rendered to plumbers, electricians, masons, painters and carpenters among many other construction services should be mainly done in cash. This has resulted to a big threat in the livelihood of the citizens in this line of work.
According to one consumer, Rajdeep Singh, he was looking for a painter to get their house whitewashed before the demonetization was announced since everyone is already booked. Now they are the ones coming to him to ask if he needed work done. He added that the workers are already getting desperate to land some projects that they agree to be paid by cheque instead of the usual cash.
Baljinder Singh who is a mason shared that people in the country are now having are hard time managing their daily expenses. Construction and renovation is now considered a luxury because majority of the citizens do not have enough cash to afford the services. He revealed that he has been staying at home for several days because of no job to look forward to.
According to a supplier of construction material, US Walia, their businesses has been impacted too. As of the moment, the only construction projects that are still being done are those under the government or project for malls. Even the biggest names in architectural firms in the country are now having a hard time getting clients. Small artisans are now idle and waiting for work since no one is hiring their services.
The business is estimated to have decreased by 80 per cent while a new demand is created – EDC or Electronic Data Capture. These are machines used to process payments made via credit and debit cards.
Meanwhile, it is business as usual when it comes to painters and decorators,Reading.