According to a survey by All India Manufacturers’ Organisation (AIMO), it was found that the economy has a reason for slower growth and it was found that demonetization & GST are among them.
Approximately 34,700 samples were being analyzed by the AIMO survey taken from the traders and MSMEs of India and on the basis of that, it was cleared that the economy suffered a lot after the year 2014.
The AIMO includes over 3 lakh micro, small-scale, and medium and large scale industries which are working into the sectors like exports and manufacturing.
As per the statistics, the total job loss for the trader segment, micro-segments, small segments, and medium-scale industries are 43%, 32%, 35% and 24% respectively.
As per the president of AIMO, “Micro industries show a 43% drop in operational profits, small-scale industries report a dip of 35% and medium scale industries faced a drop of 24%. This is huge, this deserves immediate attention as many sectors within these traders and MSMEs have already gone down beyond a revival.”
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There are multiple challenges for the MSMEs and small industries as the raw materials supplied at lower subsidies prove costly to the MSMEs.
Also to note that the Ex RBI Governor Raghuram Rajan also pointed towards the implementation of goods and services tax and demonetization. He said that there was no meaning of imposing demonetisation in a single day rather than a planned strategy.
