After demonetisation came into effect last November, 35 per cent jobs have been lost and revenue of micro-small scale industries has witnessed a 50 per cent decline in the first 34 days after Rs 500 and Rs1,000 notes were declared invalid following an announcement by Prime Minister Narendra Modi.
This jobs’ statistics came into light in a report of the All India Manufacturers’ Organisation (AIMO) as quoted by the Indian Express recently.
“While AIMO understands certain immediate repercussions of such a bold step (demonetisation) by the government, it did not anticipate or was prepared for such a jolt to industries even after one month,” the newspaper quoted AIMO study as saying.
According to the report, small and medium sized enterprises (SMEs) are the worst-hit due to note ban move. Industries engaged in infrastructure projects like big road construction projects, reported a 35 percent job losses and 45 per cent in revenue loss.
The report further analyses that jobs and revenue loss will further dip by at least 60 per cent and 55 per cent respectively by this March.
Some of the factors that led to job loss and revenue dip include zero cash inflow, restriction on cash withdrawals, absent staff among others. The AIMO’s current study was the third in a series of four studies.