New Delhi, Sept 26 (KNN) With the recent figures indicating the slowed Gross Domestic Product rate in the aftermath of demonetization and the roll out of the Goods and Services Tax (GST), the situation was expected to move from bad to better in the festive season, but it has not happened so far, Indian Industries Association said.

Talking to KNN, Sunil Vaish, President of Indian Industries Association explained the situation. He informed that the low GDP figures are not much of a shock, ever since the demonetization drive of the government in November 3016, the pace had already slowed down.

While the market was trying to come onto its feet, the government decided to go ahead with the implementation of the Goods and Services Tax (GST), despite there being demands of a possible postponement of the new taxation.

“The GST no doubt is a good move, but with the businesses registering low sales and losses, there is enough indicative figure to show that the implementation of the new taxation haven’t been smooth, the government seemed unprepared” said Sunil.

Explaining the problem of the new taxation with reference to the Micro, Small and Medium Enterprises, Vaish said that first of all, there is a slow global demand, because of which the sales had dipped.

In addition to that, the MSMEs were to face to the compliance complications, which compensated for the panic in the market, resulting in poor sales followed by losses.

Citing the instance of the domestic pain industry, he said that the period of September till December alone used to account for over 60 per cent of the sales in the previous years. Not only were the industrial units heavy with orders, the market also had good buffer stock ready for the sales in the festive season.

But this year the situations have been different. Domestic pain t industry alone have suffered a whooping  low of over 40 per cent as compared to the sales from the previous years. This phenomenon is same both with the market as well as the MSMEs that manufacture for the market.

The government needs to consider coming up with revival plans for the economy targeting specially the MSME sector, allowing smooth taxation as well as unhindered policies to regain the economic momentum the country once had, said Sunil. (KNN/ DA)