Rajasthan witnesses 40-70% dip in trade across sectors

The Dollar Business Bureau

All the major sectors in Rajasthan have witnessed a slowdown in trade, thus reflecting a decrease of around 40-70%, according to Federation of Rajasthan Trade and Industry (FORTI).

The findings have been revealed after carrying out an in-house survey about the impact of demonetisation across all the major sectors in the state. It was noticed that the impact of banning of high-value currency was seen the most in the Gems & Jewellery sector with the business witnessing a downfall of nearly 70%.

According to Nirmal, secretary of the Jaipur Jewellers Association, local investments have been hit hard by demonetisation and a corresponding downfall in the businesses concerned.

Nirmal highlighted that export hasn’t been affected much but domestic business has clearly taken a back seat as result of move taken on November 8. He also made note of the fact that the businesses dealing in cash have suffered major losses and it will take another two to three years to recover the same.

“Those who are dealing in cash, they are suffering the most. It will take a time-span of at least six months to two years to convert the losses,” added Nirmal.

FORTI had earlier predicted a loss of Rs.1 lakh crore in two months after the government announced demonetisation on November 8. It had also written a letter to Prime Minister requesting him to pay heed to grievances of the trader community.