Industrialists blame demonetisation, implementation of GST for the present dark phase of industry Shivani Bhakoo Ludhiana, August 11 As many as 215 units were shut down in the city in 2018, according to the data available with the Department of Factories and Labour. At the same time, the MSME sector claims that the figure is much more than 215 as many units do not register with the department under the Factory Act. Industrialists feel demonetisation and implementation of GST have cast their impact on industry. Recession is seen as a major reason for this shutdown of units but there are also other factors responsible for the sinking industry. The Assistant Director (Factories) here said 215 units were deregistered in all circles. Other officials in the department said there could be many reasons for deregistration by the units. “Some owners never come back for renewal. In some cases when the workforce becomes less than 10 persons, the unit automatically comes under DR (deregistration) category. Many units are virtually closed down because of various reasons. In the past two or three years, maximum units were declared DR in 2018,” said the official. President of FOPSIA Badish Jindal said as per their surveys and discussions with industrialists, about 1,500-2,000 units in the city were shut down in 2018-19. “This is the dark phase for industry. The figures at the national level are disturbing. We can say this as the number of current accounts of MSMEs in banks has seen a decline. The loans have been dropped up to 30 per cent because of strict guidelines of banks. Industry is passing through a crucial time,” said Jindal. Voicing similar views, Vibhor Garg, Secretary of All-Industries and Trade Forum, said in 2018-19, 5,000 establishments, including shops, hotels and restaurants, were closed down because of recession. Be it the auto, bicycle or machine tools sector, all complain of slowdown and recession. The government has to take all measures to save industry or else many more units will face closure. The industrialists feel that banks should provide easy loans , import-export policies need to be streamlined and refunds be made on time for the revival of industry. President of Hand Tools Association SC Ralhan said recession must have hit the business but not all units would be shut down because of it alone. He said many other factors, too, contribute to slowdown in businesses. There can be problems at administrative levels, financial levels, lack of orders, delay in payments, etc. “Recession alone cannot be blamed for the closure of units. A sensible businessman is well aware of ups and downs in business and he plans accordingly, and comes out well even in a recessionary phase,” said Ralhan. ‘Loans dropped up to 30 pc’ This is a dark phase for industry. The figures at the national level are disturbing. We can say this as the number of current accounts of MSMEs in banks has seen a decline. The loans have been dropped up to 30 per cent because of strict guidelines of banks. Badish Jindal, President of FOPSIA ‘Don’t blame recession alone’ Recession alone cannot be blamed for the closure of units. A sensible businessman is well aware of ups and downs in business and he plans accordingly, and comes out well even in a recessionary phase. SC Ralhan, president of Hand Tools Association ‘All sectors have been severely hit’ In 2018-19, 5,000 establishments, including shops, hotels and restaurants, were closed down because of recession. Be it the auto, bicycle or machine tools sector, all complain of slowdown and recession. The government has to take all measures to save industry or else many more units will face closure. Vibhor Garg, Secretary, All-Industries and Trade Forum

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