Demonetization impact: Capital growth declines in North East

After announcement of ban on 500 and 1000 notes, aam aadmi could be seen in queues of banks and ATMs. In a similar way, demonetization has impacted North East States as well.

Looking at IT fraternity, IT retailers and vendors are affected badly. A steep footfall could be seen in business, while market is deserted and consumers are only focusing on daily needs.

Pankaj Datta of Datta Computers from Agartala said, “It’s been more than one month now, my business is affected badly. Situation is so worse that the graph has now down to 30 to 40 percent. Even we are encouraging our customers to do digital payments but there is no consumer coming to market.”

Whereas, other issues such as payment default and credit management is also causing problems in making business go. While retailers are hopeful that demonetization step is fair for economy, it will take some time for market to revive.

Rajiv Kalra of Indian Export and Export in Shillong has same issues, “After demonetization, average monthly business is about 45 to 50 percent of the normal business.  We are trying to bring the turnover back by changing our Go to customer strategies. We are also trying to reach end customers to add them in our circle.” He says.

One big problem occurring is payment default. Cash flow is limited in the market and dealers are not able to pay, resulting in revenue loss. Many have questioned the government for ‘not having a plan’ on how to go about executing the demonetization decision without inconveniencing people.

Ranju Shyam of Computer Appliances and owner of Complete Solution, Aditya Jalan in Guwahati are also facing same problem as other IT retailers. Ranju says, “his business is down with footfall of 60 percent.” While Jalan has also lost his business graph comparing to previous months figures.

Ultimately, what could be seen is that investments are down and rate of capital growth is affected, which is causing trouble for IT fraternity.