As demonetization completes one year, 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 report.
The survey conducted by wholesale marketplace Wydr 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.
A wholesale marketplace covering a range of categories, including fashion, home decor, computers and electronic accessories, Wydr has over 7,500 manufacturers and distributors on its platform and services over 7 lakh retailers in over 16,000 pincodes across 29 states.
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.
On November 8 last year, the Government led by Prime Minister Narendra Modi had scrapped the then high value Rs 500 and Rs 1,000 banknotes, with an aim to root out corruption, curb black money and deter terror funding.
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.
On the other hand, almost 62 per cent of respondents said there was zero to marginal increase in the digital payments and bank transfers after demonetization.