New Delhi: With the Central government slowly drifting away from keeping the public hooked on the agenda of swiping clean black money, it seems that the fallout of the demonetisation decision is already in effect in the Indian industry.
Almost four lakh people, many of them temporary labourers who rely on day-to-day cash, are set to lose their jobs due to the imposition of the ban on the Rs 500, Rs 1000 notes. Economists fear that if the cash crunch continues, the number may increase. A fifth of the almost 32 million people employed in the textile and garment sector that are paid wages either daily or weekly are hit.
The worst-hit sectors in the demonetisation phase have been textiles, garments, leather and jewellery. Due to the drastic reduction in cash flow in the market, small-scale businesses have suffered normal operation.
On top of that, labourers working cheaply in the market are afraid to deposit their earnings in the bank account for fear of crossing the Rs 50,000 threshold which will clear them off of the poverty line tag.
Albeit business transactions have been increased in the banks, it has not, however, directly translated into a smoother operational change in the small-scale industry.