Demonetization :
Demonetization is the process in which the currency is no longer considered as a legal tender by the law of that country. It means when a country bans or replace its own currency to new currency of any value to fight against corruption and black money.
Influence of demonetization in the pharmaceutical sector of India
Demonetization is going to affect Pharma sector is related to the rates of medicines. As cash flow is going to diminish, all transaction will be done through banks and online therefore the amount of profit made cannot be kept hidden by the Pharma companies and stores. So, it will certainly discourage the Pharma stores to charge more from the customers. In addition, demonetization will also bring in the habit of maintaining legal invoices as well as bills.
In the pharmaceutical industry, many giant firms that produce healthcare products make use of money to establish them in the marketplace. Doctors are offered with cash, gifts, tours and many other perks to subscribe particular products that belong to a certain company. This makes it challenging for the small budding entrepreneurs to stay in the competition. Demonetization has put an end to such illegal cash flow in the market. Now the small PCD pharma companies may prove their worth and stay in the competition.
It will become easy for government to implementation of new rules and regulation as market is going to be more regulated. Without bill medicine availability were major concern for government to implement banning of illegal drugs and medicines.
So, there are a dozen of benefits associated with the demonetization of the Indian Pharma sector. It will be advantageous for the customers as well as for the new Pharma companies.
