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Udupi : A sudden demonetization will adversely impact various segments of the economy and it will witness immediate contraction, though this impact will diminish over line, said Dr. Shripathy Kalluraya P. Finance Officer and Professor of Economics, Mangalore University.

He was speaking during in his inaugural and keynote address of State level Conference on Demonetization : Its impact on socio-economic life at Milagres College, Kallianpur near here which was organized by Milagres College, Kallianpur along with Mangalore Sociology Association, Mangalore on Friday, 17^th March, 2017.

Dr, Shripathy Kalluraya P said that since our economy is heavily dependent on cash, as only less than half the population uses banking system for monetary transactions, demonetization has hit trade and consumption hard. With people scrambling for cash to pay for goods and services, the move is likely to take a big toll on the country’s growth and output during the current fiscal Consumption makes up for around 56% of India’s GDP, hence a drop in spending will pull down growth. The current step could also lead to behavioural changes in households’ savings and their consumption pattern.

He said that since most of the rural economy based on cash, its going to impact the rural economy sectors with a sizable magnitude transactions are expected to adversely effect. Demonetization wil push the economy because of flow of more money into banking system. Interest rates will decline further due to decrease on inflation as banks are flushed with huge inflows.

Demonetization has impacted every aspect of life in India ranging from social, economic and political. It could have been implemented in better way without affecting its intended impact on the parallel economy by proper mobilizing of resources, keeping in view of honest taxpayers’ and economy’s requirements. It may have impacted people in short term but is expected to bear fruit in the form of better tax compliance and increased digital penetration of formal economy.

Very Rev Fr. Stany B. Lobo presided the inaugural session of the conference. Dr. Gerald Pinto Principal of Milagres College, Dr. Anil Prakash Castelino Campus Director of the college, Dr. Basil Hans, Associate Professor and HOD of Economics, St. Aloysius Evening College, Mangalore, Dr Vinay Rajath D’Souza Chairman Dept of sociology, Mangalore University,Prof. Prakash Kramadhary, Secretary of Mangalore Sociology Association, Prof Annamma Convener of the conference were present.

After the invocation by Apoorva and group, Prof Melwin C Rego President of Mangalore Sociology Association and HOD of Sociology, Milagres College welcomed the gatherings. Dr. Shripathy Kalluraya P with guests on the dais inaugurated the conference with lighting the lamp.

The felicitation programme held for Dr. Richard Pais, Retd. Professor of sociology, St. Aloysius College, Mangalore, Dr. Vinay Rajath D’Souza Chairman of Dept of Sociology, Manglore University and Mrs. Sujatha Perinje Cine and T.V. Actress and National Award Winner.

Meanwhile state level Dr. T. K. V. Bhat Memeorial Endowment lecture given by Dr. Basil Hans, Associate Profesor and HOD, Dept of Economics, St. Aloysius Evening College, Mangalore.

Dr. Vinay Rajath D’Souza gave response to the felicitations. ‘Samaga Shodhana’ journal was released by guests on the dais. Very Rev Fr. Stany B. Lobo gave his presiding address. Prof. Prakash Kramadhary proposed vote of thanks and Sr. Shanthi compered the formal programme.