‘DeMo, GST hit industry growth’

Tribune News Service

Amritsar, July 23

Demonetisation and GST has hit the growth of city-based manufacturing units. Industrialists prefer to send their wards abroad to settle in developed countries instead of joining the family business.

Neeraj Malhotra, vice-president, Shawl Club of India, said the trend of sending wards to developed nations leaving the family business behind intensified after back-to-back introduction of demonetisation and GST. He claimed that majority of the factories were working 8-12 hour shift. Malhotra said neither the owners yielding to their satisfaction nor the employees were getting good salaries. Earlier, employees were earning good remunerations after performing double shift duties.

Industrialist SS Khanna said he closed his two plastic manufacturing units here after the introduction of new regime. He said his son and daughter-in-law had left for Australia on study visa. While studying they are earning a good amount of money and have invited me to Australia, he added. “I visited Australia and studied the business model there and am ready to shift after winding up all operations here once my son and daughter-in-law get permanent residency,” he added.

Textile manufacturer Rajinder Jain said liquidity shortage was the biggest crisis being faced by local entrepreneurs. He said it had become a trend to delay the payment over the material sold for 8-10 months. Already profits have squeezed and expenses kept increasing. The paltry profit received after eight to ten months is not of much consequence.

Punjab Pradesh Beopar Mandal president Piara Lal Seth said, “Consecutive governments have introduced new economic laws and taxes, besides advance technology. However, the governments are not keeping a check on rising population. which is a main hurdle in the country’s growth.”