ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2023
  • Adani Saga
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Axis MF
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • Viral
    • Education
    • Jobs
Read in App
Business News » India News

Demonetisation impact: India's manufacturing output may take a hit

Suvodeep Rakshit, Economist of Kotak Institutional Equities said, “ While a gradual improvement in consumer sector production can be expected on the back of 7 Pay Commission payouts and monsoon-led rural demand, we need to be cautious on the degree of demand slowdown due to the recent demonetisation measures in a significantly high cash economy.”

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Demonetisation impact: India's manufacturing output may take a hit
Demonetisation is currently underway and severe cash crush in Indian economy is likely to sustain for a few days more. Photo: Reuters

In September 2016, the Index of Industrial Production (IIP) growth displayed a positive print after two-consecutive month’s contraction. IIP for September stood at 0.7% versus the (-)0.7% recorded in August 2016. 

Demonetisation is currently underway and severe cash crush in Indian economy is likely to sustain for a few days more. This is going to have an impact on India'a factory output. Madan Sabnavis and Anuja Shah Economists of Care Ratings said, "Also the recent demonetisation measure will push back consumer spending, that can slowdown sales growth in Q3. While there could be a recovery with a lag, industrial growth would be sluggish and we could now end the year with growth of 1-2%. "

Suvodeep Rakshit, Economist of Kotak Institutional Equities said, “ While a gradual improvement in consumer sector production can be expected on the back of 7 Pay Commission payouts and monsoon-led rural demand, we need to be cautious on the degree of demand slowdown due to the recent demonetisation measures in a significantly high cash economy.”

Another was a report by Abhishek Kumar of Dalal Street journal stated that many analysts’estimates October IIP numbers to be on the strong side, on the back of festival season. However, the situation is expected to turn sour thereafter from November, which would clearly have a negative impact of currency demonetisation.

On November 08, PM Narendra Modi announced the ban of Rs 500 and Rs 1000 notes in a move to tighten screws on black money. 

High-denominations notes account for nearly 86% of currency in circulation in India. Till March 2016, there were about 15,707 million of Rs 500 notes and somewhat 6326 million of Rs 1000 notes, as per the Reserve Bank of India data. 

He said, " The sluggish industrial sector further lends acceptance to our view that growth slack will keep output gap negative and will ensure that any upside risk to inflation emerging from the demand side will be contained. This argument could gain further strength in the event that the recent demonetization measures hit discretionary consumption demand."

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
IIP in SeptemberIndex of Industrial Production (IIP)Demonetisation bank notesEconomyRs 500 notesRs 1000 notesNarendra Modi
Written By: ZeeBiz WebTeam
Updated: Mon, Nov 14, 2016
03:22 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Festive demand and waning impact of GST may push IIP higher in coming months Festive demand and waning impact of GST may push IIP higher in coming months
India's factory output rises by 0.7% in September India's factory output rises by 0.7% in September

LATEST NEWS

Citroën E-C3 unveiled in India: Check range, features, specifications, charging, warranty details and more

RITES Dividend 2023: Check out payout amount, record date and payment date details here

Explained: What is chatbot, its type, usages and all you need to know

Paytm shares cross Rs 700 level after four months; is this an opportunity?

Top Gainers & Losers: Bajaj Finance, Wipro lead rally; L&T cracks nearly 2% - Check target price

IRCTC Dividend 2023: Massive 175% Dividend announced - Check amount, record and payment date

Happy Chocolate Day 2023: Best Wishes, WhatsApp Messages, Quotes, Sayari, Images to share with loved ones

Gold Price Today (February 8): Yellow metal gains as US dollar retreats on Powell's less-hawkish stance - Check rate in Delhi, Mumbai and other cities

How will the RBI repo rate hike impact the housing sector

PM Kisan Yojana Update: Registered farmers need to do THIS before February 10 - Check details here

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. India Dot Com Private Limited. All Rights Reserved.
LIVE TV