Demonetisation hits Indian C&T

By Raghavendra Verma 27-Feb-2017

India’s industry has been disrupted by the demonetisation of INR500 and INR1,000 notes

India’s cosmetics and perfumery industry has been severely hit by the demonetisation of higher value Indian rupee – INR500 (US$7.30) and INR1,000 ($14.70) – notes that constituted 86% of the total cash in the country’s economy.

Production within the sector has fallen by 20% since the government unexpectedly announced on 8 November that the notes would no longer be legal tender, Satish Thipsay from the Mumbai-based All India Cosmetic Manufacturers’ Association told SPC.

When people do not have money for food and medical treatment, buying cosmetics or perfume is a luxury, said Nivedita Assar, President of the Fragrance & Flavour Association of India, also in Mumbai.

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