Vadodara: Manufacturing and trade may have taken a hit after demonetisation but the Micro, Small and Medium Enterprises (MSME) feel that the move will help their sector in the long run.

Members of industrial associations and chambers in Gujarat said that the small and medium sector firms that employee crores of people will not just get loans at cheaper interest rates but also help them get organized in the coming years.

“Around 98 per cent of our members said that demonetisation is a good step. There will some problem for few months but eventually the banks that are now flush with funds will give out loans at lower interest rates to small and medium industries,” said Vinod Kumar, President and trustee, India SME Forum. Kumar attended the SME Finance Summit organized in the Vibrant VCCI Trade Show 2016 on Friday along with members of several industrial associations.

Param Shah, head of FICCI Gujarat State Council too batted for demonetisation. “We will be moving towards a less cash economy wherein more and more transactions will be done online or through debit cards. Also, as the industries get organized and interest rates reduce, prices of products will go down in the coming years.”

Shailesh Patwari, Senior Vice President, Gujarat Chambers of Commerce and Industry, was however, sceptical about the government’s decision. “Demonetisation will help the economy but I think the government should have first created the necessary infrastructure, especially in rural areas, for cashless transactions. Such sudden withdrawal of currency notes will affect the rural economy.”

“Cashless transactions will lead to more transparency and banks will have lot of liquidity due to demonetisation. This money will be invested in creating infrastructure that will create more jobs. Our GDP growth will slow down for a quarter but it will pick up soon,” said Geeta Goradia, industrialist and former president of Federation of Gujarat Industries (FGI)

Source: Times of India

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