Demonetisation effect: Small traders hit, pain to linger for three quarters

In past 50 days, 60% of the work force was let off in retail, agri, textile and other sectors

Traders, retailers and various trade bodies in India have been saying that 100% foreign direct investment (FDI) in multi-brand retail, if allowed, would wipe out industry. However, according to experts, demonetisation has turned out to be much bigger disruptor. 

The Narendra Modi-led government does not allow FDI in multi-brand retail owing to resistance from trader and retail lobbies who fear losing business and jobs. 

Demonetisation, according to analysts, has hit small and medium businesses hard and it would take at least three quarters before things are back to normal. In the past 50 days since demonetisation, according to industry body