Articles by Anuradha Kalhan

Following the announcement of demonetisation on 8 November 2016, India saw the withdrawal of nearly 86% of the cash in circulation. This caused prolonged currency shortages and impacted employment, sales, income, loan payback capacity, savings and by extension, financial inclusion. A survey conducted among two distinct groups in Mumbai and Pune, three months after demonetisation, in April–May 2017, reveals the adverse impact of currency shortages on the incomes and livelihoods of those employed in tiny, informal enterprises. With a decline in the sales in their businesses, their income and savings fell, and so did the demand for credit.

The after-effects of the demonetisation of 500 and1,000 banknotes still continued to be felt well into 2017. A study of Pune’s local markets enumerates the impact, compounded by the confusion over the goods and services tax.

India perhaps has the highest retail density in the world. Economies of scale drive the retail sector towards rapid growth in terms of size of outlets and dominance in geographical and product markets, posing challenges for preservation of genuine competition. Growth in size also has consequences for manufacturers, wholesalers and dealers in the supply chain who face a loss of alternative marketing/retail outlets as monopolies emerge. The growth of large format retail raises serious issues for the urban environment and town planning in dense and rapidly urbanising countries like India. The need for intelligent regulation, therefore, cannot be overemphasised.