When talking about demonetization and its impact on different sectors, experts are of the opinion that the real estate, consumer goods and automobile are the highly affected industries. On the other hand, they are also of the opinion that the banking sector has a different impact as we see banks are functioning in full swing manner to meet the demands of their customers with respect to cash. Many other sectors are also affected. When sectors face negative impact, there are some sectors that have more of positive outcomes as compared to negative impact. For instance, when we consider the school education sector, this sector is expected and is also experiencing some positive things as compared to negative outcomes.
Education is one of the important sectors in India and particularly, the government pays better importance to school education with a view to eradicating illiteracy. This is why education is made compulsory up to 14 years in the country. It is also made compulsory that companies that hire child labourers will be facing huge consequences. When school education is given much importance by the central government, there are obviously many positive effects of demonetization in this sector. Let us explore such positive and also negative outcomes of this move by the central government on school education:
As the schools that demand huge capitation fee and the donation towards admissions are greatly affected due to demonetization, they will not find difficult to get donations as they cannot accept the old Rs.500 and Rs.1000 notes. Even though this is a negative thing from the point of view of educational institutions, it is actually something positive for parents, who cannot pay huge donations to enrol their kid in a big school.
Some private schools, particularly those follow the central and international syllabus with huge popularity among public charge a donation of around 40-50% more in cash. Now, with demonetization, they will be at a difficulty to gather this type of huge cash, which is, in turn, beneficial for parents, who cannot afford.
In short, demonetization is a move that will make school education at even good schools affordable for parents, who come under middle-income group and cannot pay huge donations towards getting a seat for their child in a big school with excellent academic records.
After evaluating the positive outcomes that will be experienced by school education sector due to demonetization, it becomes important to evaluate the negative impact as well.
Negative Effects of Demonetization:
Even though the donation collection will be curbed by schools, it will not last for long. Once the initial troubles associated with demonetization are over, they will start collecting huge donations for providing a seat in their school for a child.
In addition, it is also expressed by some social activists that there are chances of reduction in the quality of education, as schools cannot collect donations that they use for procuring different educational resources.
Furthermore, as the schools cannot pay a huge salary to teachers, this, in turn, may have an impact on the quality of education offered by the institution.
In short, demonetization is actually a positive move as far as the school education sector is concerned. Parents are recommended to begin their search for the right education institution for their kid now, such that they can get an admission to a good school without having to pay huge donations. The schools now are hesitant about quoting their donation as they will be at risk if they get old cash notes. They cannot also get new notes as people cannot withdraw after a specific limit from their bank account.