As per the latest survey by the All India Manufacturers’ Organisation (AIMO), the TMSME segment (Traders, Micro, Small and Medium Enterprises) has seen job losses of 35 lakh in the last four-and-half years.
While the trader segment experienced a job loss of 43 percent, loss of 32 percent was reported in the micro segment, 35 percent in the small segment and 24 percent in medium segment.
Further, if 100 companies in the trader segment were making a profit in the year 2014-15, now, only 30 are profitable. In the micro segment, the number is 47, in the small segment it is 65 and in the medium segment, the number has dipped to 76.
AIMO said that it was due to the stiff competition from e-commerce sales that traders are closing down shops and the closure of shops means loss of revenue in rental income for middle-income families.
The worst hit are the self-employed categories such as tailors, cobblers, barbers, plumbers, and electricians and sectors dominated by unorganized labor, including plastic, matches, crackers, dyeing units, stitching units, stone units, tanneries, job work units and printing companies.
The AIMO survey blames note ban and the introduction of a new tax system for the downfall of the sector.
K. E. Raghunathan, national president, AIMO said, "Our survey is a clear indicator that the TMSME sector is in a critical condition at this moment and we feel the Government of India needs to address the issue with a lot more seriousness and urgency."
AIMO has highlighted housing, textiles, automobiles, power, match industries, stone, plastic, tannery and consumer products as sectors that need immediate revival and assistance. It has also provided a list of suggestions to be implemented to create job opportunities based on the results of the survey.
These suggestions have to be now picked on and the government has to start investing in these sectors to ensure growth and development of the nation, as the contribution from the TMSMEs forms an integral part of the economy.