Construction sector, road-side vendors worst hit by demonetisation, claims SBI survey
New Delhi [India], Jan.10 (ANI): Even as debates over demonetisation continue to grow, the surveys done in the aftermath present an overwhelming support by the citizens despite the chaos generated by shortage of cash. SBI carried out a primary survey to understand the nuances of the decision to demonetise the high value currency notes.
The survey was conducted between December 30, 2016 and January 3, 2017 in which 63 percent of the respondents showed support towards this move. The report has been authored by Dr Soumya Kanti Ghosh, Chief Economic Advisor and GM, Economic Research Department, SBI.
A popular opinion among these respondents, however, presents the fact that the supply of Rs 2000 denomination notes without intervening notes of Rs 500 has resulted in chaos.
According to the survey, 69 percent of the respondents did affirm that their business has been impacted. For the most of the businesses that were impacted, the decline has been less than 50 percent.
The businesses that bore the maximum brunt include the construction sector and the unorganized sector, primarily informal road-side vendors. The gems and jewellery sector has also been hit with declining sales.
Within the textile sector, shopkeepers dealing with retails segment have been impacted more than those in the wholesale.
Automobile sector and chemist shops seem to have been impacted the least since they already had digital modes of transaction.
On November 8, 2016, the Union Government announced that Rs 1,000 and Rs 500 notes would no longer be legal tender, and that the move was aimed at digitalising the economy. (ANI)