New Delhi, Jan 1 (KNN) The Micro, Small and Medium Enterprises (MSMEs) growth in the state of Uttar Pradesh registered a dip of over 50 per cent as compared to the earlier trend, a rough estimate by MSME body Indian Industries Association (IIA) informed.

Talking to KNN, Sunil Vaish, President of IIA said that the micro, small and medium enterprises in the past grew at a rate of 8-9 per cent annually, but this figure is to touch a low of 3-4 per cent this fiscal.

Vaish informed that the low performance of the sector comes amidst various factors including the aftermath of demonization as well as the Goods and Services tax (GST).

“MSMEs that is generally a cash run sector suffered blow because of the demonetization drive of the government earlier”, he said.

This led to the disruption in production-demand cycle, the market experienced a massive drop in demand in 2017 with even the festive seasons making no impressive trend in sales.

Also with the teething effects of demonetization, things didn’t go very well for the MSMEs.

However the industry is hopeful that the New Year is to bring in positive business as the economy is getting acquainted with the new taxation.

Uttar Pradesh government’s initiatives to bring in investments is another positive sign for the sign, Vaish informed.

Commenting over the new taxation, Vaish said that while GST did have an impact due to the early complications, it also brings in optimism for the MSMEs in Uttar Pradesh and the cost disparity that existed due to variation in taxes between the states isn’t there anymore.

Uttar Pradesh houses micro, small and medium enterprises from different sectors including plastic, engineering, consumer goods etc. (KNN/DA)