Demonetisation, GST Behind Fall in MSMEs’ Profits and Jobs: Survey
The survey, conducted by AIMO, reported that operational profits of traders had fallen by 70 per cent since 2014.
According to a new survey by the All India Manufacturers’ Organisation (AIMO), profits of traders and micro, small and medium enterprises (MSMEs) has reportedly registered a steady decline since 2014. Significant job losses have also been reported across segments. The reasons for this are reportedly demonetisation and the roll-out of GST.
Micro enterprises reported job losses of 32 per cent, small industries reported 35 per cent and medium-scale industries reported 24 per cent job losses. Trader segment reported the highest job losses — 43 per cent.
K E Raghunathan, president of AIMO, told The Indian Express that the operational profits of traders across the country declined by a whopping 70 per cent since 2014. He said that this should serve as a reminder to the central government that there is a need to pay attention to the sector “with a lot more seriousness and urgency”.
The AIMO represents over 3 lakh MSMEs and large scale industries engaged in manufacturing and export activities. The survey is based on an analysis of 34,700 samples across the country.