The consumption slowdown in India began with the demonetisation exercise, according to a Deccan Herald report, RBI’s data reveals that the gross bank exposure towards consumer goods loans has seen a steep, constant decline in the aftermath of the note ban in November 2016.
As of March 2017, the gross bank exposure towards the consumer goods loans stood at a record Rs 20,791 crore, time after it had witnessed a constant growth for nearly past six years.
Following demonetisation, the numbers decreased by 73% to just Rs 5,623 crore. In the last fiscal year (2017-18), the number dipped by 5.2%.
According to the report, following demonetisation, earnings in the Micro Small and Medium Enterprises have specifically dropped, contributing to the phenomenon.
The shipping industry has been hurt the most, registering a severe fall of 24.1% YTD. The only sector to have shown improvement rather is that of the housing loans, which have grown by 2.5%, mostly on the back of a 3.4% rise in housing loans.
Demonetisation, Aadhaar spurred digital payments growth: RBI
