‘35% job losses, 50% revenue dip’

respectively, by March. ■ In the manufacturing sector, medium and large scale industries reported the least joblosses in the first 34 days (5%) and took a revenue hit of 20 per cent. This dip is likely to be 15 per cent for both by March.

According to the study, the factors that contributed to the impact are: zero cash inflow, rules curtailing cash withdrawals, staff absenteeism, a weaker rupee, choked fundraising options, inability of banks to work on proposals, derailed real estate sector, fear among foreigners, poor preparedness, and uncertain status of GST.

K E Raghunathan, national president, AIMO, said the studies were conducted by an expert committee set up by the organisation. He delined to provide details of the committee but said that it includes industrialists, SMES and export sector experts, chartered accountants, consultants and lawyers.

Raghunathan said that AIMO had sent periodical reports about their findings to the Union commerce and finance ministries, on November 12, November 25 and December 12. “Unfortunately, there was no response of acknowledgement or reply from these ministries. Since the study is extremely critical of the Centre’s failed plan, we are unable to reveal the identity of the experts preparing these reports,” he said.

Referring to the government’s approach, Raghunathan said, “They turned a blind eye towards this emergency situation. They simply closed their ears, kept patting themselves or their bosses. Among all the states, Maharashtra and Tamil Nadu are the worst affected. The impact in these two states is still being ignored, thanks to an inefficient government in Tamil Nadu and a Maharashtra government that is bound to support the demonetisation drive,” he said.

The AIMO represents about 13,000 direct members and 3 lakh indirect members in India, including nearly 3,000 industries and associations in Maharashtra and 1,200 in Tamil Nadu.