The sudden decision of demonetising Rs 500/1,000 notes and the “chaos created thereafter” due to the limited availability of new currency has caused significant disruption to the economy, it said.
The informal sector is not a standalone sector and has strong-weak linkages with the formal sector, depending on the nature of goods/services dealt in. Therefore, where business in the informal sector has come to a grinding halt or down by 30-40 per cent and beyond, it has resulted in either ‘nil’ or lower income generation, the agency said.
