Sunday, 27 November 2022

 

 

LATEST NEWS Operation of brain tumor in Civil Hospital, Ambala, no one can imagine how big it is : Anil Vij Vigilance Bureau Arrests Assistant Field Officer Markfed For Demanding Bribe Rs 52,000 Mental health and well being prime concern of modern society: R.D. Dhiman Watch today the World Television Premiere of Neeru Bajwa and Rubina Bajwa starrer Beautiful Billo at 1 p.m. on Zee Punjabi More Than 21000 Jobs In Merely Eight Months Reflects Commitment Of State Government For Welfare Of Youth: Bhagwant Mann Advocate General office celebrates Constitution Day Giant strides are being taken in the field of IT and new age technologies for better delivery of governance to citizens: Dr Jitendra Singh Maruti Suzuki & LPU Collaborated to host EFFICYCLE-2022 Competition at LPU Campus Chief Secretary R.D. Dhiman chairs high level meeting to review winter preparedness District-Level Constitution Day Function Held At Bachat Bhawan Atal Dulloo reviews working of Farmer Producer Organizations in Jammu Constitution Day : Judicial Academy organizes workshop, special skill enhancement training for Civil Judges of Jammu Province Week-long Shehri Jan Abhiyan from Nov 28, two-day MTMP-2.0 from Dec 5 : Dheeraj Gupta ACS Atal Dulloo visits Mega Fruit Plant Nursery, Chakroi, R S Pura Chief Secretary Dr. Arun Kumar Mehta reads Preamble at Constitution Day celebration at Reasi Lt Governor Manoj Sinha Inaugurates Constitution Day Celebrations Amrit Maan Unveils The Title & Poster Of Debut EP ‘Xpensive’ Challa Song Review: Ninja Gives Impactful Vocal In Upcoming Punjabi Crime Thriller Snowman 'BB 16': Kajol, Revathy join Salman Khan 'Weekend Ka Vaar' NASA's Mars helicopter makes a short yet significant flight Veteran films, theatre and television actor Vikram Gokhale passes away at 77

 

Small, medium firms were limping back when GST added to pain: Stakeholders

Web Admin

Web Admin

5 Dariya News

New Delhi , 03 Nov 2017

The backbone of India's manufacturing sector -- micro, small and medium enterprises (MSMEs) -- had not yet recovered from the demonetisation move when the Goods and Services Tax (GST) came in to add to the pain, according to industry stakeholders."The base of the MSME pyramid is comprised of informal sector, which has traditionally done business in cash. With withdrawal of cash, this market seized up for a quarter or so. They (MSMEs) are limping back to normality," Anil Bhardwaj, Secretary General, Federation of Indian Micro and Small and Medium Enterprises (FISME), told IANS."The recovery is slow because of the new disruption in the form of GST. In the short term, there could be loss of business opportunities because of lack of capital in the informal markets," he said.Bhardwaj said that the housing sector, which had more than 60 product categories linked to MSMEs, was drastically hit, both directly and indirectly. According to D.S. Rawat, Secretary General of Assocham, except for some payment gateways, most of the sectors lost out."The impact of demonetisation would have evaporated, but the GST roll-out issues are being braved by some sectors, particularly the SMEs and the traders," Rawat told IANS.n the Economic Watch report by Ernst & Young for September 2017, demonetisation has been blamed for an adverse impact on the economy in the short run, as its "benefits are yet to overtake" the costs."The government and people at large did have to bear considerable costs in the immediate aftermath of demonetisation. Some of these costs may be difficult to quantify, but objective evidence of the short-term costs is available in at least some important dimensions," the report said."There was an erosion of growth, output and employment," it added.

The overall economic growth is still contested, however, as some argue that the downward spiral in gross domestic product (GDP) growth preceded demonetisation."Though the GDP growth has been lower post the exercise, it will not be fair to conclude that demonetisation was the only factor responsible for this. The growth had started slowing right after the third quarter of 2016-17 and the trend continued post-November as well," said Ranen Banerjee, Partner-Public Finance, Economics and Urban, at PwC India.Others like the EY's report indicate that demonetisation resulted in a "tangible adverse impact" on GDP growth."Real GDP growth has been falling steadily quarter after quarter since the fourth quarter of FY16, when it was nine per cent. It fell to 5.7 per cent in first quarter FY18, a decrease of 3.3 percentage points," the report pointed out."The two quarters that can be considered as the demonetisation quarters in FY17 were the third quarter of FY17 and fourth quarter of FY17. In these two quarters, the GDP growth rate fell to seven per cent and 6.1 per cent, respectively."It mentioned that the downward trend in growth preceded demonetisation and was largely caused by an investment slowdown.On the industrial production front, in December 2016, the Index of Industrial Production (IIP) had contracted by 0.4 per cent from a 13-month high of 5.7 per cent reported for November.However, it rose 2.7 per cent in January 2017. The latest IIP figures for August showed that factory output grew 4.3 per cent against the same month last year on the back of robust mining and electricity sector growth.According to the Ministry of Statistics and Programme Implementation, manufacturing output in the country in July 2017 had grown marginally by 1.2 per cent."The event clearly pushed the economy towards a higher degree of digitisation and financial inclusion. Accordingly, the digital finance sector seems to have gotten a push while over the longer term financial services should be the biggest gainer," said Anis Chakravarty, Lead Economist, Deloitte.

 

Tags: Demonetisation

 

 

related news

 

 

 

Photo Gallery

 

 

Video Gallery

 

 

5 Dariya News RNI Code: PUNMUL/2011/49000
© 2011-2022 | 5 Dariya News | All Rights Reserved
Powered by: CDS PVT LTD