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Demonetisation, GST and Corona havoc: 37 lakh small businesses closed in 7 years, about 1.5 crore people unemployed

Pratik Mehta

By Pratik Mehta

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Due to demonetisation, implementation of GST law and Corona, 37 lakh small industries in the country have come to a standstill in seven years. So due to this, about 1 crore 34 lakh people working in it have become unemployed. This shocking figure has been obtained from the analysis of information released by the government. This figure is of people engaged in small unorganized units or small businesses related to manufacturing, trade and service sector. In the manufacturing sector alone, 18 lakh such units have closed, due to which 54 lakh people have become unemployed.

54 lakh people are unemployed in the unorganized sector

Between October 2022 and September 2023, about 17.82 crore unorganized units were working in the manufacturing sector in the country. Their number was 19.70 crore from July 2015 to June 2016. Sources said that about 9.3 percent of the units have closed down in seven years.

In the year 2015-16, 3.60 crore people were working in the manufacturing sector. In the year 2022-23, their number decreased to 3.06 crores. That is, 54 lakh people have become unemployed in this sector. The Ministry of Statistics and Program Implementation of the Central Government has released the Annual Survey of Unincorporated Sector Enterprises (AUSE) report for 2021-22 and 2022-23. The National Statistical Office (NSO) released the 73rd round survey report for 2015-16. On comparing the data given in it, this horrific picture of unemployment has come to the fore.

However, if we compare 2021-22 and 2022-23, the number of commercial units and the number of people working in them has increased. Earlier this survey was conducted every five years. Last time NSS released the survey report of the 73rd round. After this, this survey is being conducted every year since 2019-20.

The corporate sector took a hit

Comparison of data from NSS 67th and 73rd round survey reports and ASUSE 2021-22 and ASUSE 2022-23 data shows that the corporate sector has been badly hit by demonetisation, GST and Covid lockdown.

Between 2015-16 and 2021-22, the number of units declined by more than 30 lakh and the number of people employed in them decreased by 1.30 crore. During this period, people had to face demonetisation, GST and Covid lockdown by the central government.

Pratik Mehta

Pratik Mehta

I am Pratik Mehta, a passionate business news writer dedicated to covering economic trends, market analysis, and corporate developments.

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