The impact of demonetisation on FMCG and informal seems pronounced. Turnaround is awaited.
Our speed stands demonetized!
[ ##thumbs-o-up## Share Testimonial here - make our day!]
There are opposite claims on the economic situation post DeMO, by the government and the economists, analysts and thinkers. Whereas the govt. claims that the situation has since normalised, the ground realities do not match these claims. There is no doubt about the fact that demonetisation has dealt a telling blow on the economy, atleast in the short run. Both the formal as well as the informal sectors are badly hit. And there are no concrete figures and facts to indicate when he economy would come back to the normal. The sales of most FMCG companies like Godrej, Hindustan Lever fell drastically between October and December 2016. Do read our comprehensive Bodhi on Demonetisation! The profit after tax (PAT) of twelve FMCG companies declined drastically during Q3 (the third quarter) of 2016-17 for the first time in 12 years. This is indication of the impact the govt. move has had on the economy.
If this is the situation of leading and established large scale companies, the plight of the informal sector is anybody’s guess. The above proves that there is a very close bond between corporate India and rural India, where about 70% of our population lives. It also proves that the govt. decision of demonetisation has equally hit corporates, rural as well as urban India. Although the govt. is trying to push cashless economy, there is no real distinction between a cash and a cashless economy. Though corporates would pay through cheques or electronic transfers to their suppliers and employees, they would also accept cash sales from their millions of distributors. For many video analyses on Demonetisation, welcome to Bodhi Shiksha channel! Rural India, where most villages do not have banking facilities, are totally dependent on cash transactions. The withdrawal of about 86% cash (in the form of high denomination notes of Rs. 500 and Rs. 1000) from the system has brought economic activities in rural areas to a near halt. During all this period, farmers either dumped their vegetable produce on the roads or fed them to their cattle as they could not afford to bring them to the markets. This has created a supply crunch in cities and an opportunity for middlemen to make more money. So who has been benefited by demonetisation?
BODHI BOOSTER Bodhis News Shrutis Quizzes Sameeksha Bhasha Downloads | GOVT. EXAMS Headlines Quizzes | APTITUDE PT Boosters Full Site | CIVILS TAPASYA English हिंदी Answer-writing | FULL COURSES Self-Prep Online | VOCAB Course
[ ##bug## Errors? Suggestions? Welcome here!] Comments welcome in the thread below!
COMMENTS