Two years after getting hit by demonetisation, MSMEs continue to limp

A survey conducted across 25,000 units, comprising nearly 50 per cent of micro and small industries and 25 per cent each of medium and large firms, has found a sustained blow to the bottom line

Until two years ago, small-time middlemen in the leather cluster of Tamil Nadu used to collect raw leather and sell it to units mostly for cash payments. Today, they have almost disappeared. 

Blame it on demonetisation that took place on November 8, 2016. Two years on, micro, small and medium enterprises (MSMEs) and traders across industries are still reeling from aftershocks. From job loss to dissolution of business, the impact of the drastic economic measure is continuing to be felt. 

Says Rafeeque Ahmed, chairman, Council for Leather Exports, “The middlemen in Tamil Nadu’s leather cluster used to operate largely in