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12/01/2017 06:04am

MSEs suffered 50% dip in revenue, 35% drop in revenue post demonetization: All India Manufacturers’ Organization

image MSEs suffered 50% dip in revenue, 35% drop in revenue post demonetization: All India Manufacturers’ Organization

New Delhi, Jan 12 (KNN) Post demonetization, micro and small enterprises (MSEs) have suffered 35 per cent jobs losses and 50 per cent dip in revenue, highlights a study conducted by All India Manufacturers’ Organization (AIMO).

AIMO conducted a study to check the effect of demonetization and projected a drop of 60 per cent in employment and loss of 55 per cent in revenue overall in the manufacturing sector before March 2017.

National President of AIMO K.E. Raghunathan shared the report with the KNN in which it has been found that the industrial sector has faced unconditional problems after demonetization of higher currency notes.

“The major activities of MSMEs have been halted and MSMEs have been worse-hit,” claimed K.E. Raghunathan.

AIMO revealed that MSMEs have already suffered 35 per cent job losses and a 50 per cent dip in revenue due to demonetization drive.

According to the report there were various factors responsible for this adverse impact.

“Cash inflow has become zero, fund raising has been chocked, banks are unable to work on proposals, nearly 80 percent of the currency has been scraped, uncertainty over  Goods and Service Tax (GST) implementation time,” said the report.

Raghunathan said that the study has been conducted with a vision to check the impact of demonetization over the industries.

As per the data, Medium and large scale industries that primarily engage in infrastructure projects reported 35 per cent cut in employment and 45 per cent revenue loss. Industries engaged in export-oriented activities (including foreign companies) reported 30 per cent job losses and 40 per cent revenue fall. In the manufacturing sector, medium and large scale industries reported a revenue hit of 20 per cent

AIMO also mentioned that the organization does not hold itself responsible for the absolute correctness of these figures as they are only prepared based on sample study done with select members industries. (KNN/RAS)


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