Shoes and Accessories - January 2017

Following the demonetization move, retail investors as well as brands are getting jittery. According to a study conducted by India’s largest organisation of manufacturers, in the first 34 days since demonetisation, micro-small scale industries suffered 35 per cent jobs losses and a 50 percent dip in revenue. The study, conducted by the All India Manufacturers’ Organisation (AIMO), has also projected a drop in employment of 60 percent and loss in revenue of 55 per cent before March 2017.

Similarly, many noted economists have made dismissive statements, and one among them is noted development economist Jean Dreze who said: “If the government is really interested in dealing with the problem of ill-gotten wealth, it would be useful to start the process by introducing transparency in political funding. The effects of demonetisation might be worse and last longer than the government seems to expect. Short-term changes in the informal sector are largely below the radar of official statistics.”

It is apparent that claims and refutes will remain, but some of the facts, however, are also too important to be overlooked. In this backdrop, Public Accounts Committee (PAC) of Parliament headed by senior Congress leader K V Thomas, which has asked Reserve Bank of India (RBI) Governor Urjit Patel to appear before it on January 28, has asked 10 probing questions on the issue.

This is one development which many have been waiting, and if left unsatisfied, given the political acrimony, more could unfold. But what is clear to everyone is that demonetization hasn’t done the trick, and whosoever is in power should realize that any plan and policy shouldn’t be pushed through without wider consultation.