Guwahati, Nov 19: The landlocked Northeast India has been worst affected by demonetisation, says Federation of Industry and Commerce of North Eastern Region (Finer)--the umbrella industry body of the region.
The Finer adds the region has been the worst affected since demonetisation, with business slumping by 25 per cent.
"Demonetisation has affected the Northeast the most because banking penetration in the interior areas is low compared to other regions of the country. Small-time traders have been immediately hit by the move as they hinge mostly on cash for their daily transactions," Finer President Pabitra Buragohain told reporters.
[Also Read: 72 percent support demonetisation, says survey]
Buragohain added that sectors with a sizeable magnitude of cash transactions have been adversely affected, the worst hit being the construction sector.
However, the Finer said it was a bold move undertaken by Prime Minister Narendra Modi-led NDA government to fight against black money and corruption by scrapping high value currency notes on November 8.
"Consumption of high-end goods has come down. But the move will have a positive impact on growth in the long run. We expect the economy to recover in six months," he added.