Nitin Kedia, Founder - Kedia Fincorp and National Gen Secretary - All India Jewellers & Goldsmith Federation has spelt out the problems the unorganized sector faces due to Indian government’s crackdown on black money and the compliance challenges it faces in handling complex regulations.
The GJ sector has a large unorganized sector and this crackdown is imposing a huge burden on small businesses, artisans etc.
He says while the intention to curb illegal financial activities is commendable, critics argue that the methods employed are disproportionately affecting the livelihoods of millions in this informal economy.
Here are the key issues impacting unorganized sector and small businesses:
Unorganized Sector: Caught in the Crossfire
The unorganized sector, comprising small businesses, street vendors, and service providers, has long been the backbone of India's economy, offering employment opportunities to a significant portion of the population. However, the recent push to control black money has led to increased scrutiny, compliance requirements, and, at times, harsh penalties for those operating in this sector.
Compliance Challenges: A Struggle for Survival
Many businesses in the unorganized sector operate with limited resources and may lack the infrastructure to comply with complex regulations. The stringent measures imposed by the government, such as mandatory digital transactions and extensive documentation, create significant hurdles for these entities, often pushing them further into the shadows rather than bringing them into the formal economy.
Impact on Livelihoods: Unintended Consequences
The unintended consequences of these measures are felt by the very individuals the government aims to protect. Small-scale entrepreneurs, daily wage workers, and marginalized communities bear the brunt of compliance-related stress and financial strain. The emphasis on formalization, while well-intentioned, seems to ignore the socioeconomic realities of those operating in the unorganized sector.
Striking a Balance: A Call for Thoughtful Policies
Critics argue that a more balanced approach is needed—one that considers the unique challenges faced by the unorganized sector. Advocates for policy reform suggest measures that encourage formalization without placing an unbearable burden on those who may lack the means to comply with stringent regulations.
Conclusion
As the government continues its battle against black money, it is crucial to reassess the impact of these measures on the unorganized sector. Striking a balance between controlling illicit financial activities and safeguarding the livelihoods of those in the informal economy is essential for fostering inclusive economic growth. The narrative surrounding these efforts must shift from inadvertently harassing the unorganized sector to crafting policies that uplift and empower this vital segment of India's workforce.
For more Updates Do follow us on Social Media
Facebook Page https://bit.ly/3blw5Rg
Instagram https://bit.ly/3MsRHbP
YouTube https://bit.ly/3LjGj2L
Twitter https://bit.ly/3E9IO5U
Linkedin https://bit.ly/3M17Xlk
WhatsApp Group https://bit.ly/JewelBuzz13
Commentaires