Demonetisation brings labour industry to a standstill

Industry executives said if if the cash crunch continued, the number of jobless people will only grow.

By: Express Web Desk | Published:November 24, 2016 2:20 pm
demonetisation, bjp, new notes, new 2000 rs note, fake notes, demonetisation fake notes, cash crunch, currency ban, fake notes in market, india news, indian express, High- value currency has made it difficult for employers to make payments to daily wage labourers.  (File)

Two weeks after Prime Minister Modi’s demonetisation move banning Rs 500 and Rs 1,000 notes, it is the labour-intensive sector that is bearing the maximum brunt. There has been widespread loss of jobs in industries like textile, garments, leather and jewellery. Senior industry executives fear that post-demonetisation, more than 4 lakh people who are dependent on daily wages  have been rendered unemployed. Of these, some have either lost their jobs or stopped working owing to lack of payment and production cuts.

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Industry executives warned that if the cash crunch continued, the number of jobless people will only grow. They, however, added that a clearer picture will emerge in the weeks to come when more cash is likely to be in circulation.

Production has been severely affected in the days following the sudden demonetisation move. Many factories have already reduced their production because of liquidity crisis. The cash withdrawal limit of Rs 50,000 a week helped the industrialists to conduct only necessary business transactions.

Besides, many labourers do not have savings account, says in hubs like Tirupur, as 70 per cent of them are migrant workers from the north and northeastern parts of the country. At the same time, a lot of workers do not use bank accounts because they risk losing poverty or BPL status if the amount in their saving account exceeds the limit of Rs 50,000.

Almost a fifth of 32 million people employed in textile and garment industries, who are paid their wages daily or weekly, have been severely hit. Around 25 per cent of the 25 lakh workers in labour industry have also been affected.

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  1. M
    mumbai
    Nov 24, 2016 at 12:09 pm
    Why should we oppose the government? they are doing good. good for whom? the answer is it depends. now public do not have chioce. accept praise modi hate muslims. Bharat Mata is happy. hindu leaders are happy government is happy. public is happy. really Modi did his job well.
    Reply
    1. A
      Anurag Srivastava
      Nov 24, 2016 at 12:25 pm
      These parties earlier did not want the scams to be discussed in Parliament. They want to discuss a non-corruption issue in the Parliament with riders. PM is ready with the 'kachha chitha's' of all. At the time of discussion, he will open the cupboard and tumbling down will come out the cloths from them
      Reply
      1. B
        Bismuth Tritium
        Nov 24, 2016 at 10:34 am
        Mr. Manmohan Singh why are you panicking and polemic when you say "demonetization is organized loot and legalized per?" Did you lose a lot of black money?lt;br/gt;lt;br/gt;When the income tax dept seizes the property and ets of someone who has not paid a substantial amount of tax, then the victim (the tax evader) will always feel begrudged and will always call the Income Tax dept's action as "organized loot and legalized per" of his personal wealth.lt;br/gt;lt;br/gt;Even “well-intentioned savings over many years of our mothers and sisters for emergency" is black money if it has not been declared and taxes have not been paid on it.lt;br/gt;lt;br/gt;lt;br/gt;If the villager proves his/her income is agricultural income, there are no taxes. If the villager is a vegetable reseller / vada pav vendor / barber / etc. , he/she must pay taxes if it exceed 2.5 lakh.lt;br/gt;lt;br/gt;If taxes haves been paid on it, then there is no cause for worry even if the amount is in crores. Prior to Nov 8, 2016, no one forced them to deposit white money (tax paid) in the bank. You could have saved it all in cash if you can reasonably prove it is white cash. With demonetization, they deposit it in the bank, and after everyone gets a chance to withdraw some initial new cash (so there is no hogging of new cash by a select few people), when there is enough floating new cash available, all restrictions on withdrawal of savings/accounts in form of cash notes will be removed.
        Reply
        1. L
          LC
          Nov 24, 2016 at 2:58 pm
          the idea of India is not restricted to Hindu leaders . India is much morel arger and much more greater as a concept. Do not insult India by making such petty arguments
          Reply
          1. M
            manikantan
            Nov 24, 2016 at 11:00 am
            Such a disgrace this modi and his supporters. Look like Herds commiting suicide
            Reply
            1. A
              ABC
              Nov 24, 2016 at 2:40 pm
              This what happens when people get carried away by Marketing Campaign and vote for a Showman, who is now a Godman followed by blind Bhakts.
              Reply
              1. A
                ABC
                Nov 24, 2016 at 2:34 pm
                When you know that PM will open "Kachha Chitha", then even the opposition knows this. Even then, they are not scared to call the PM on the floor of the house. Now, if the opposition is not scared, then it means that either PM does not have anything to open "Kachha Chitha" or the opposition is clean.
                Reply
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