NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Joe Biden
    United States of America
    COVID-19
    Russia-Ukraine crisis
    NewsBytes
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout


    India Business World Politics Sports Technology Entertainment Auto Lifestyle Inspirational Career Bengaluru Delhi Mumbai Visual Stories Find Cricket Statistics Phones Reviews Fitness Bands Reviews Speakers Reviews

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
     
    Home / News / World News / India's demonetization slows down Nepal's growth
    World

    India's demonetization slows down Nepal's growth

    India's demonetization slows down Nepal's growth
    Written by Supriya
    Edited by NewsBytes Desk
    Jan 17, 2017, 06:05 am 2 min read
    India's demonetization slows down Nepal's growth
    Credits

    According to BMI Research, Nepal's economy is bearing the brunt of India's demonetization move. Since India scrapped 86% of its cash in circulation, trade, tourism and remittances to Nepal have been dragged downwards. BMI has revised its forecast for Nepal's economy for this financial year to July 2017, from an earlier estimate of 2.5%, it's now been reduced to 2.2%.

    Nepal's fragile economy

    Nepal and its economy has yet to recover from the devastating earthquake in 2015 that killed 9,000 people. Its $21 billion economy had already been struggling with the aftermath of the earthquake; it grew at less than 0.8% in fiscal year 2015-2016. Being a land locked country, Nepal has always been heavily dependent on India for trade, jobs and even aid.

    Nepali migrants in India

    Nepali migrants in India sent home $640 million in 2016 which is nearly 2.6% of Nepal's GDP. According to World Bank, in 2010, there were nearly 870,000 Nepali migrants in India but many believe the number to be much higher.

    India's demonetization slows down Nepal's growth

    According to BMI Research, Nepal's economy is bearing the brunt of India's demonetization move. Since India scrapped 86% of its cash in circulation, trade, tourism and remittances to Nepal have been dragged downwards. BMI has revised its forecast for Nepal's economy for this financial year to July 2017, from an earlier estimate of 2.5%, it's now been reduced to 2.2%.

    Indian currency banned in Nepal

    The Nepal Rastra Bank, its central bank, has banned Indian currency until it receives a formal intimation from the Indian central bank about issuance of new Indian currency notes. This decision has left thousands of Nepalis in a lurch especially those who're involved in informal trade in the vicinity of the India-Nepal border; they're now unable to make cash transactions for their businesses.

    Slump in Indian tourists

    The inflow of Indian tourists to Nepal from January to November 2016 was a little over a lakh. Indian tourists to Nepal who usually carry and pay in Indian currency notes, have already begun to reduce.

    Nepal seeks RBI notice to make Rs.2000 notes legal

    Nepal has sought an official notification from RBI to make the new Rs.2000 note legal tender in the country; in Jan'15, RBI had issued a notification making the old Rs.500 and Rs.1000 notes legal tender in the country. Without the FEMA notification the new currency cannot be legally used in Nepal. Nepal's Foreign Minister Prakash Sharan Mahat will visit India next week.

    Share this timeline
    Facebook
    Whatsapp
    Twitter
    Linkedin
    India
    Nepal
    Reserve Bank Of India (RBI)
    World Bank

    India

    India records 425 COVID-19 cases, 3 deaths in 24 hours COVID-19
    Weather news: Monsoon likely to be normal, predicts IMD India Meteorological Department (IMD)
    US Defense Secretary Lloyd Austin to visit India next week Lloyd Austin
    COVID-19: India registers 490 new cases, 2 deaths COVID-19

    Nepal

    Indian climber dies after falling sick at Everest base camp Mount Everest
    China's news rules for Kailash-Mansarovar Yatra, Indians to pay most China
    Traveling to Sandakphu? Visit these beautiful places Travel And Tourism
    Ajith Kumar turns chef on a biking trip in Nepal Ajith Kumar

    Reserve Bank Of India (RBI)

    You can start exchanging your Rs. 2,000 notes from today Shaktikanta Das
    Rs. 2,000 note withdrawal: Debunking all myths, revealing facts Indian Government
    Don't rush to exchange Rs. 2,000 notes: RBI governor Shaktikanta Das
    No forms, documents needed to exchange Rs. 2,000 notes: SBI State Bank of India (SBI)

    World Bank

    US nominee Ajay Banga to become World Bank president unopposed  Joe Biden
    World Bank president nominee Ajay Banga tests positive for COVID-19 India
    Who is Ajay Banga, US nominee for World Bank president United States of America
    India questions World Bank's stand on Indus Waters Treaty India

    Love World News?

    Subscribe to stay updated.

    World Thumbnail
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2023