SBI report indicates negative impact of demonetisation on business

India Infoline News Service | Mumbai | January 11, 2017 15:33 IST

This was evident after SBI published its report which says demonetisation has taken a toll on 69% of business in Pune and Mumbai.

Well, if you think that the recent demonetisation policy has not affected the development; here’s a news which takes you off. According to SBI report, Prime Minister Narendra Modi's announcement last November to take out Rs 1,000 and Rs 500 of the circulation has adversely affected businesses. 
 
This was evident after SBI published its report which says demonetisation has taken a toll on 69% of business in Pune and Mumbai. According to the survey carried by SBI, the construction sector and the road side vendors have been badly hit. The report says that 50% of the respondents who were questioned said that their business had a bad impact as they suffered from a cash shortage in this period. 
 
The garment business also suffered heavy losses due to the wrath of demonetisation as the limitations on withdrawals kept the potential purchasers away in the wedding season and hence the sales observed a restricted trend, the report says. 
 
Experts from many research institutions fear that due to demonetisation, the growth of the Indian economy will be marred. Also, the making available higher denomination notes of Rs 2,000 only added fuel to the fire due the unavailability of change, resulting in the situation becoming chaotic. 
 
At the same time one should remember that there is a silver lining to every cloud and after dark days there is a new beginning when Indian marches towards a cashless and digital India. Hence, although, the growth in India has witnessed a short term downfall; it is expected that the economy will be back on track soon.
 

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