Industries react to demonetization on its second anniversary
New Delhi, Nov 8 (KNN) On the second anniversary of demonetization, various industrial associations had mixed reactions on it. Some associations said that it had a positive impact on MSMEs, while others think it has purely been negative for the MSME sector.
While talking to KNN India, Secretary of Federation of Small & Medium Industries (FOSMI), A.K Sengupta said, “Demonetization has a positive impact on MSME.”
“MSMEs sector is doing well and after the announcements it became beneficial and MSMEs,” he added.
He said, “The MSMEs are continuously increasing in number, there is no such great negative impact of the demonetization.”
“Demonetization had a negative impact only and we are still struggling to come out of it,” said R Raju, Vice-President, Karnataka Small Scale Industries Association (KASSIA) told KNN India.
“There is nothing that is coming out to be positive for the industries,” he said.
Raju mentioned, “Both GST and demonetization has come around the same time and it affected a lot of industries.”
He added, “Especially MSMEs are affected very badly.”
“Now we are trying to adjust with circumstances,” he said.
Federation of Punjab Small Industries Association's (FOPSIA), President Badish Jindal said, “It is still having a bad impact on the economy.”
“The recession is still upto 20%,” he added.
He said, “During demonetization, people invested cash in goods and property and also a lot of cash was gone overseas. So still the market have cash crunch which is impacting the trade.”