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Small, medium firms were limping back when GST added to pain: Stakeholders (Note Ban Series)

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Small, medium firms were limping back when GST added to pain: Stakeholders (Note Ban Series)
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New Delhi, November 3, 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.

In 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.

(Rohit Vaid can be reached at rohit.v@ians.in)

(Editors: The above article is part of a series of demonetisation stories leading up to November 8)

–(IANS)

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Cho Ramaswamy: The Man Who Wore Many Hats

Cho Ramaswamy won several accolades and awards during his career as an entertainer and as a journalist.

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Cho Ramaswamy was undoubtedly one of the most prominent indian Personalities. Twitter
Cho Ramaswamy was undoubtedly one of the most prominent Indian Personalities. Twitter

By Ruchika Verma

  • Cho Ramaswamy was a multi-talented man who ventured into acting, directing, journalism and politics
  • He was very close to late CM of Tamil Nadu, Jayalalithaa for whom he acted as a philosopher and guide
  • Cho Ramaswamy was very vocal about his criticism of politicians and unethical practices

Srinivasa Iyer or Cho Ramaswamy was an Indian film actor, director, magazine editor, political satirist, and a lawyer. He was born on 5th October 1934 and was one of the most prominent Tamil personalities in India.

Cho Ramaswamy's magazine Tughlak has a huge fan following. Twitter
Cho Ramaswamy’s magazine Tughlak has a huge fan following. Twitter

He was the man of many talents who passed away at the age of 82 on 7th December 2016. Cho Ramaswamy the founder and editor of the Tamil magazine Thuglak, was also a recipient of the prestigious Padma Bhushan award, for his contributions in Literature and Education.

Cho Ramaswamy undoubtedly was one of the most prominent personalities in the southern Indian politics. Here are few things about his life which you may not have known before:

How his career started 

Cho Ramaswamy was first and foremost a lawyer by profession, being born in a family of lawyers. He later branched into theatre, films and finally into journalism and politics.

Cho Ramaswamy won Padma Bhushan for his contribution in the field of Literature and Education. Facebook
Cho Ramaswamy won Padma Bhushan for his contribution in the field of Literature and Education. Facebook

He got into the theatre while he was still practising law. His work as a satirist was very much appreciated. His most famous drama is  ‘Muhammad bin Tughluq,’ it was so brilliant that it became a classic.

He ventured into journalism and founded his own magazine Tughlak, which was mainly focused on the local social and political issues. It was widely and highly appreciated for its satirical and honest views on the politicians and politics. He was fearless in his criticism of the governments.

He later got into politics and was a member of Rajya Sabha from 1999 to 2005. He openly went against Jayalalithaa, when she was at her most powerful, even though she was very close to him. He even predicted Narendra Modi as India’s Prime Minister, long before BJP even declared him as a candidate. He was a true visionary in all senses.

Cho Ramaswamy and Jayalalithaa 

Cho Ramaswamy and Jayalalithaa were one pair of friends whose relationship went beyond friendship to a plane where not all can reach. Jayalalithaa debuted as a child actress with the YG Parthasarathy drama troupe where Cho Ramaswamy was already a star. They worked together in 19 films.

Cho Ramaswamy was Jayalalithaa’s greatest friend but also her most vocal critic. It was the only who was consulted in the matters of Jayalalithaa’s political career by herself and by the star-politician MGR. He acted as her friend, philosopher and guide in films as well as in politics.

The late Tamil Nadu CM Jayalalithaa was extremely close to Cho Ramaswamy. Twitter
The late Tamil Nadu CM Jayalalithaa was extremely close to Cho Ramaswamy. Twitter

You may also like: Iron Lady of India: Jayalalithaa was an inspiration for Women

It is being said many times that the late Tamil Nadu chief minister and AIADMK chief Jayalalithaa once told Ramaswamy that he has to live till she is alive. Interestingly, Cho Ramaswamy died barely 36 hours after Jayalalithaa died. According to doctors who were treating him, before he was put on the ventilator, he watched the live coverage of Jayalalithaa’s body lying in state at Rajaji Hall, Chennai.

There is only one instance of discord between the two, during 1996-2001, where he became a staunch critic of Jayalalithaa because of her unethical ways as a Chief Minister. However, as she mended her ways, he warmed up to her again.

Cho Ramaswamy not only influenced Jayalalithaa’s professional life as an actress and politician, but also her personal life. She considered him her and guide and consulted him before all major decisions.

Ramaswamy and his achievements 

Cho Ramaswamy won several accolades and awards during his career as an entertainer and as a journalist. Apart from being awarded a Padma Bhushan, he also won B.D. Goenka award for excellence in journalism.

Cho Ramaswamy was also famous for his closeness with various prominent politicians, including Narendra Modi. Twitter
Cho Ramaswamy was also famous for his closeness with various prominent politicians, including Narendra Modi. Twitter

His achievements were not only limited to awards. His achievements went beyond that. His association with prominent political leaders like Jayaprakash Narayan, L.K. Advani, Chandra Shekhar, G.K. Moopanar, Jayalalithaa and Narendra Modi, and his role in influencing some of their decisions are noteworthy.

Also Read: Need more Satire and Humour to build bridges between Communities and Societies, says PM Narendra Modi

His achievements as a playwright and actor are also noteworthy. Many of his plays went onto becoming national hits. And he received critical acclaim for his acting as well as his stints as a director.

Perhaps, one of his biggest achievement was the fact that he took many roles throughout his life and ended up successful in all of them. He was indeed the man who wore many hats, and managed to balance them all equally well.