1. Now, Demonetisation set to cost 400,000 jobs

Now, Demonetisation set to cost 400,000 jobs

Industry is staring at temporary job losses due to demonetisation, as production gets hit, especially in labour-intensive sectors like textiles, garments, leather and jewellery.

By: | New Delhi | Updated: November 24, 2016 6:31 PM
They, however, added that this estimate is based primarily on anecdotal evidence and that a clearer picture will emerge in the weeks to come. (PTI) They, however, added that this estimate is based primarily on anecdotal evidence and that a clearer picture will emerge in the weeks to come. (PTI)

Industry is staring at temporary job losses due to demonetisation, as production gets hit, especially in labour-intensive sectors like textiles, garments, leather and jewellery. As many as 4 lakh people, mostly daily wagers, may have either lost their jobs or shunned work temporarily due to the lack of payment so far, and the number is only going to grow if the cash crunch persists, senior industry executives said on condition of anonymity.

They, however, added that this estimate is based primarily on anecdotal evidence and that a clearer picture will emerge in the weeks to come.

Interestingly, Engineering Export Promotion Council (EEPC) vice-chairman Ravi Sehgal said even though some of the labourers have bank accounts, they are unwilling to accept direct payment through the banking channel for fears that if the amount exceeds R50,000 (a year), they could lose their below poverty line status and consequently be stripped of various subsidy benefits.

In a meeting with commerce and industry minister Nirmala Sitharaman on Monday, various export promotion councils warned of lower production.

The mood was sombre and some of them said many factories had cut down on production by half from the pre-demonetisation level due to the liquidity crisis, said an industry executive present in the meeting.

They sought up to a tenfold hike in the cash withdrawal limit from the current R50,000 a week to be able to conduct certain necessary business transactions.

Roughly a fifth of the almost 32 million people employed in the textile and garment sector who are paid wages either daily or weekly are hit. While some of them have already lost their jobs, many are apprehensive of such a fate. A majority of garment industry workers, especially in hubs like Tirupur, do not have a savings bank account there, as 70% of them are migrant workers from the north and northeastern parts of the country.

Similarly, 20-25% of the roughly 2.5 lakh workers in the leather industry have been adversely affected as they are daily wage workers. The industry has been hit particularly hard as 90% of the units are small and medium enterprises. In the jewellery sector, 15-20% of workers, who are paid daily, have been affected.

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    Jitender arora
    Nov 25, 2016 at 6:15 am
    Only a temporary cash s were down in this period but ppl are showing good s prior to 8 November (3 quarter).Further there would be no loss of jobs. Only a temporary phase upto 2 months.No need to worry, all economist r giving their opinion from the view of pro and anti demonetisation
    Reply
    1. C
      Concern
      Nov 24, 2016 at 6:47 am
      Exports will hit and china stan and rest will gain and dominate the market who to blame be patient and take rest eat dal roti
      Reply
      1. L
        Lokesh
        Nov 25, 2016 at 4:42 am
        Black money what these fools are talking about is hard earned money of middle cl businesses where he just saves some tax as he is living In a corrupt system and has to pay so many government vultures to survive. This money does not leave the country neither is invested in any of antinational activities but rather is invested back in the economy (business) where in return it creates jobs , employment and more taxes and saves our economy from the horror of RESESSION . Vote for tge chaiwala..,
        Reply
        1. A
          Ajay
          Nov 25, 2016 at 1:19 am
          Any other topic ! Like Defence / sports/ culture ! Please post positive news . I am fed up of seeing and hearing political parties and media alwaya against some good cause.
          Reply
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            Ajay
            Nov 25, 2016 at 1:14 am
            Dont mislead, its a temporary loss and pls specify what kind of jobs you talking about . come up with Data.
            Reply
            1. I
              Investor
              Nov 26, 2016 at 6:46 am
              We were planning to start new venture with new product introduction for Indian market But because of demonetization, All our efforts in research and product prototyping has gone in vein. Where people don't have money to eat how can they buy new products.Demonetization might have benefits, but from business perspective, I personally doubt. For us it's a major lose but we are happy that we are financially safe now by not introducing our services in India for now.
              Reply
              1. S
                shakri
                Nov 24, 2016 at 11:32 am
                Acche din
                Reply
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                  aditya dandime
                  Nov 24, 2016 at 8:20 am
                  Sir businesses supposed to work through banks if they have cash transactions it facilitate generation of black money! Govt spends a lot on social security schemes which benefits many undeserving people , a big scam! Workers must be through bank only!!
                  Reply
                  1. A
                    Arvind Pakhle
                    Nov 24, 2016 at 8:19 am
                    Symptoms
                    Reply
                    1. C
                      Chandra Prakssh
                      Nov 24, 2016 at 10:51 am
                      Very good article exposing the inevitable down sliding of economy and it' s effects on common man and poor in particular.It is really astonishing to see as to why the Govt and the single man army has not studied and could not antite the very bad effects that are being seen now and could not do the exercise with fool proof planning. This is in fact bound to happen when a dictotarial regime becomes rigid ad wants to do things of his preferences to suit his timings with angles of political benefits and is bent upon going ahead without giving heed to even best of experts and professionals available. On the top of that if the regime has some stooges or yes men kept in position they add to the problem by giving advises to the liking of the regime without considering and objecting or dissenting even if in their views the results could be dangerous ,as is the present case of demonetisation carried out.
                      Reply
                      1. H
                        Himanshu
                        Nov 25, 2016 at 6:55 pm
                        Second and third paragraph. Read them Modi Haters.
                        Reply
                        1. A
                          Against Sick
                          Nov 24, 2016 at 2:43 am
                          GOI- please come down severely on rumor mongers like Express group. Shut them down for spreading falsehood and put their editor behind the bar. They are playing politics against nation along with other anti-nationals like Kejri, Pappu and Mamata
                          Reply
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                            arun dwivedi
                            Dec 21, 2016 at 11:20 am
                            Itna PM mila hai india ko ki agli generations iska failaya hua raita samatne me nikal jayegi
                            Reply
                            1. G
                              ganapati
                              Nov 24, 2016 at 5:33 pm
                              ,Indian GDP will fall because one portion of GDP comprises black income.One big portion of domestic investment and consumer spending comprises black money,if this black money is eliminated,Indias GDP will fall.Still too early to say how much GDP will fall.
                              Reply
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                                Gopal Keskar
                                Nov 24, 2016 at 1:28 pm
                                A lot of hardships for the common man
                                Reply
                                1. H
                                  Harsha
                                  Nov 25, 2016 at 8:17 am
                                  "They, however, added that this estimate is based primarily on anecdotal evidence and that a clearer picture will emerge in the weeks to come." - Then why didn't you wait for few weeks before creating panic? Sick!
                                  Reply
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                                    Harry
                                    Nov 28, 2016 at 1:01 am
                                    Thats because you are a dumb bhakt who is not ready to accept the reality.
                                    Reply
                                    1. J
                                      John
                                      Nov 24, 2016 at 8:26 pm
                                      It is not easy to clean the made in last many decades. Those who are responsible for that are hit badly. For common man there are challenges initially. To gain something we have lose something. It was our bad luck that we did not had good leader till now.
                                      Reply
                                      1. Y
                                        Yashpal
                                        Nov 27, 2016 at 11:23 pm
                                        Why are you searching for news which doesn't suit your eyes. Please go to Zee News website. It's all together different world. Full of "positive" new for you. Or you can just close your eyes and viola! all bad news will disappear.
                                        Reply
                                        1. M
                                          manikantan
                                          Nov 24, 2016 at 8:55 am
                                          Apply Burnol. Curse of people who have suffered will not go waste
                                          Reply
                                          1. M
                                            manu
                                            Nov 24, 2016 at 8:41 am
                                            haha..but y and how ? dnt know..simply without any fact ..news
                                            Reply
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