Study finds demonetization hit wholesalers, retailers
One year after demonetization, about 36 per cent of wholesalers and retailers in India say that note ban has had high to severe impact on their businesses, as per a survey conducted by wholesale marketplace Wydr.
The report said nearly 21 per cent respondents observed over 50 per cent reduction in October 2017 sales as compared to same period previous year. Besides, 27 per cent said their sales had reduced between 20-50 per cent.
The findings are based on poll conducted through retailers, wholesalers and manufacturers engaged in apparel, lifestyle and electronics trade across the country.
“A significant number of businesses has seen direct business impact in the form of reduced sales following the demonetization announcement, however the overall sentiment remains positive regarding the Government’s decision,” Founder and CEO, Wydr.in, Devesh Rai said.
Mention may be made that on November 8 last year, the Narendra Modi-led Government had scrapped the then high value Rs 500 and Rs 1,000 banknotes.
Interestingly, the survey found that there was no decline in cash sales for majority of the businesses as only 40 per cent respondents said cash sales without an invoice have reduced after demonetization.