Demonetization; not a pleasant surprise.

Demonetization, a surprise from NDA government was enforced 8th of November, 2016 has had an adverse effect on small business within country.

This surprise affected the economic activities both in rural as well as urban India, with the micro, small and small enterprises finding it impossible to get cash in the notes of Rs 100 for their daily work. Business men found demonetization very harsh for them.

Since five hundred and one thousand rupees notes no longer currency of India, the notes of the new five hundred and rupees 2000 had to be widely circulated within the market, otherwise, its effects on small industries would be adverse.

The Confederation of All India Traders (CAIT) - one of the largest trade associations in India, said “businesses in markets across the country have reduced to 25 percent since the government announced the surprise move on November 8 nights.”

The Reserve Bank of India (RBI) has reduced the GDP growth rate forecast for 2016-17 from 7.6% to 7.1%, the Asian Development Bank from 7.4% to 7%, Fitch from 7.4% to 6.9% and Bank of America-Merrill Lynch from 7.7% to 7.4% (for calendar 2016).

Shopkeepers and small business owners have narrated their sad stories of cashlessness. They said that there are fewer buyers and those who buy goods from us also come with new notes of Rs 2000."Some people buy items for Rs 100 and give Rs 2000. We have to return Rs 1900. This consumes a large number of small value currencies, which are already in short supply," Subhash Chand, a grocery shop owner in south Delhi's East of Kailash, told IANS.

Meanwhile, the government is encouraging people to pay through cards or e-wallets and make payments online. But due to nasty dispensation, this facility cannot be used extensively. Aman Thapa, who owns a small Chinese eatery in Arjun Nagar of south Delhi, said he did not have the facility to accept card payment and the cash crisis "has led to a huge decline in my business. Nowadays few people are visiting our food stall. We have suffered huge losses.”

"The fixed limit in withdrawing money has caused the ripple effect in our business as we sell handicrafts of high cost and none is coming to buy it as people do not have enough cash," Rajasthan Emporium a handicraft shop owner at CP, Abhishek Sharma told IANS. These are happening to the shopkeepers of the National Capital, then think about the impact this would have on the small traders across India.