India’s micro and small enterprises saw a whopping 32% drop in jobs in the last 4 years: Survey

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• The trader segment saw a 43% decline in number of jobs since 2014 according to a survey by the All India Manufacturers’ Organisation (AIMO).
  
• The job losses have been attributed to a 70% drop in operational profits since 2014.
  
• Demonetisation and GST roll out are among reasons that impacted the sector.
  

India’s micro, small and medium (MSMEs) have seen a dramatic drop in the number of jobs amid declining operational profits since 2014, according to a $4by the All India Manufacturers’ Organisation (AIMO).

Specifically, the trader segment saw a 43% decline in number of jobs since 2014, followed by a 32% drop in the micro-enterprises and 35% in small enterprises. The medium-scale enterprise segment, meanwhile, a 24% fall in the same period.

Overall, the trader and the MSME sector saw a loss of over 3.5 million jobs since 2014, according to the survey, which which analysed over 34,000 traders and MSMEs across India between October 1 and 30, 2018.

The job losses have been attributed to a 70% drop in operational profits since 2014, the Indian Express $4, citing K E Raghunathan, president of AIMO. After a steady growth in jobs up until 2015-2016, the trader and the MSME sector were significantly hit by demonetisation and the implementation of the Goods and Services Tax (GST), according to him.

There are an estimated $4MSMEs in India that make up over 40% of the country’s GDP. AIMO members include MSMEs in engineering, chemicals, pharmaceuticals, food processing and services sectors.

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