Demonetisation to remonetisation receives partial response: Survey

New Delhi: The completion of 50-day of notes ban which was announced by Prime Minister Narendra Modi on November 8 in a bid to strike black money, corruption, counterfeiting and funding to terror organisations, evoked a partial response from the economists, business and people. Majority of the economists with 81 per cent respondents have cited a significant impact on India's economic growth in the shorter term but the benefits of demonetization will help in sustaining economic growth in the longer term.

Survey of economists, businesses and people on a structured questionnaire was undertaken by the PHD Research Bureau of PHD Chamber of Commerce and Industry during the month of December 2016. In the business segment, 73 per cent respondents are facing huge cash crunch due to demonetisation as they are unable to fulfill their daily cash requirements to pay wages to daily wagers and contractual workforce. Production process not only in the informal sector but also in the formal sector has been impacted directly or indirectly, said the survey.

Cash driven segments such as fruits and vegetable markets, horticulture and floriculture, agricultural and food processing, construction activities, among others have been impacted. But the immediate effect would probably be short-lived and the long term effect will drive the Indian economy to new areas of growth in the coming times, said the survey study.(UNI)