- Title: Currency clampdown rattles India’s bustling markets
- Date: 19th November 2016
- Summary: NEW DELHI, INDIA (NOVEMBER 18, 2016) (REUTERS) PAN OF CUSTOMERS AT A STORE AND SCORES OF PEOPLE LINED UP OUTSIDE A BANK ATM (AUTOMATED TELLER MACHINE) A SMALL TIME VENDOR SELLING HAND BAGS WALKING BY DESERTED STORES A SELLER DISPLAYING HIS WARES AND WAITING FOR CUSTOMERS FEW CUSTOMERS IN THE MARKETPLACE ANOTHER SMALL TIME VENDOR USING HIS MOBILE PHONE A YOUNG CANDY SELLER SEARCHING FOR CUSTOMERS SELLERS SITTING IDLE FEW CUSTOMERS AT A CLOTH SHOP FOOTWEAR ON DISPLAY (SOUNDBITE) (Hindi) A SHOPKEEPER, PUROSHOTTAM MADAN, SAYING: "The business is suffering. How can the business function if the people don't have money? There is no money. The move was implemented without adequate currency in store. More currency should be released. They (banks) should take cheques from shopkeepers and encash them, the flow will improve - there is no black money in that. 2,000 and 2,500 rupees (cash withdrawals) are not enough. The poor are in distress." FEW CUSTOMERS IN A USUALLY BUSTLING MARKETPLACE A SELLER WAITING FOR CUSTOMERS PEOPLE WALKING BY AS SELLERS WAIT WITH THEIR WARES ON DISPLAY BOARD SHOWING PRICES OF CLOTHES STREET FOOD SELLER WAITING FOR CUSTOMERS GOLGAPPA (WATER BALLS), A POPULAR INDIAN STREET SNACK, ON DISPLAY (SOUNDBITE) (Hindi) A STREET FOOD VENDOR, RAJVEER SINGH, SAYING: "People have money but in higher bills 2,000 rupee notes for which we don't have change because we are a small time business, or they have old currency. If someone has 100 rupee or 50 rupee notes, then he will save it for domestic purposes instead of spending it here." NEW DELHI, INDIA (NOVEMBER 18, 2016) (REUTERS) A DESERTED ELECTRONICS MARKETPLACE WASHING MACHINES ON DISPLAY SALESMEN AT AN ELECTRONICS STORE USING THEIR MOBILE PHONES SELLERS CHATTING WITH EACH OTHER SELLERS DRINKING TEA AT DESERTED STORE A SELLER STANDING OUTSIDE HIS SHOP NOTICE READING (English): "WE ACCEPT DEBIT CARD/CREDIT CARD ONLY... WE DON'T ACCEPT OLD 500/1000 NOTES" VARIOUS OF FEW CUSTOMERS AT AN ELECTRONICS STORE PAN OF A SHOPKEEPER SPEAKING ON THE PHONE AND FEW CUSTOMERS AT THE ELECTRONICS STORE (SOUNDBITE) (Hindi) A SHOPKEEPER, ATUL KUKREJA, SAYING: "The items which we sell are large and expensive and come in the range of 100,000 rupees or 50,000 rupees. Even a small LED television costs around 20-25 thousand rupees. Banks and ATMs are not dispensing enough money for people to buy such things. " GURGAON, HARYANA, INDIA (NOVEMBER 18, 2016) (REUTERS) GLOBAL CONSULTANCY FIRM PWC'S OFFICE CLOSE OF THE PWC LOGO PARTNER AT PWC, NEEL RATAN, SITTING RATAN SPEAKING HANDS OF RATAN (SOUNDBITE) (English) REGIONAL MANAGING PARTNER FOR PWC FOR INDIA, NEEL RATAN, SAYING: "If I have lost my cash, I need to save and get to a point before I will start buying these things. So, at least one or two quarters of sluggishness on bulk of consumer durables, automobiles etc one can expect." NEW DELHI, INDIA (NOVEMBER 18, 2016) (REUTERS) REFRIGERATORS ON DISPLAY A SHOPKEEPER LOOKING AT HIS MOBILE PHONE EXTERIOR OF EMPTY SHOPS
- Embargoed: 4th December 2016 05:40
- Keywords: New Delhi black money Sarojini Nagar street vendors markets
- Location: NEW DELHI/GURGAON, HARYANA, INDIA
- City: NEW DELHI/GURGAON, HARYANA, INDIA
- Country: India
- Topics: Government/Politics
- Reuters ID: LVA001593YBZX
- Aspect Ratio: 16:9
- Story Text: Major shopping hubs in the Indian capital have worn a barren look for the past week as the government's move to abolish higher denomination notes kept customers away.
The Sarojini Nagar market, one of Delhi's favourite bargain hunting spots and normally a bustling marketplace, has temporarily lost its sheen and life for shopkeepers has come to a near standstill after the sudden ban.
Swarmed by bargain hunters and college students on a daily basis, the consumer footfall in the market has reduced drastically since the November 8 announcement and small and medium businesses are bearing the brunt of the cash crisis.
"The business is suffering. How can the business function if the people don't have money? There is no money. The move was implemented without adequate currency in store. More currency should be released. They (banks) should take cheques from shopkeepers and encash them, the flow will improve - there is no black money in that. 2,000 and 2,500 rupees (cash withdrawals) are not enough. The poor are in distress." said cloth and furnishing seller, Puroshottam Madan.
Indian Prime Minister Narendra Modi's drive to purge "black cash" from the economy has, at a stroke, wiped out 86 percent of the money in circulation. Delays in printing new 500 and 2,000 rupee notes mean that money could be tight for weeks to come.
The audacious move has dealt a severe blow to small time traders and shopkeepers whose 90 percent trade is in cash.
A street snack vendor, Rajveer Singh, said customers would rather keep the lower denomination currency for their basic household chores than eating out.
"People have money but in higher bills 2,000 rupee notes for which we don't have change because we are a small time business, or they have old currency. If someone has 100 rupee or 50 rupee notes, then he will save it for domestic purposes instead of spending it here," said Singh.
Other markets in New Delhi too wore similar looks as salesmen whiled away their time in the absence of any customers.
"The items which we sell are large and expensive and come in the range of 100,000 rupees or 50,000 rupees. Even a small LED television costs around 20-25 thousand rupees. Banks and ATMs are not dispensing enough money for people to buy such things," said a shopkeeper, Atul Kukreja, who deals with electronics items.
Analysts said the bold move could subdue the Indian economy in the short-term but would ultimately prove positive, by cutting corruption and giving a badly needed boost to stretched government finances.
Neel Ratan, a partner at the global consultancy firm PWC, said there would be a slackening of demand in certain sectors before the overall economy gains steam.
"If I have lost my cash, I need to save and get to a point before I will start buying these things. So, at least one or two quarters of sluggishness on bulk of consumer durables, automobiles etc, one can expect," said Ratan.
The move to demonetize the large bills is designed to bring billions of dollars' worth of cash in unaccounted wealth into the mainstream economy, as well as dent the finances of Islamist militants who target India and are suspected of using fake 500 rupee notes to fund operations.
Modi's ruling Bharatiya Janata Party (BJP) came into power in 2014 promising to bring billions of dollars of black market money into the regular financial system.
India's "black economy", a term widely used to describe transactions that take place outside formal channels, amounted to around 20 percent of gross domestic product, according to investment firm Ambit. - Copyright Holder: REUTERS
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