ગુજરાતી
English
After a serious report, there is doubt in the country about the economic model of Gujarat
Dilip Patel
Ahmedabad, June 26, 2024 (Google translation from Gujarati)
Demonetisation, GST, China, economic policy, importance of big industries, lack of government support and lockdown have badly affected the industry. In the last seven years, 37 lakh small businesses have closed and 1 crore 34 lakh people working in them have become unemployed.
This detail has come to light in the annual survey of unorganised sector enterprises.
This can be estimated from the fact that if the loss of Gujarat’s industries is considered to be 10 percent compared to the loss of the country, then 3 lakh 70 thousand industries and 13 to 15 lakh people have lost their jobs. The Prime Minister made not one but three mistakes. People are facing problems.
Studying the claims of various organizations reveals that in the last 5 years, 1 crore people have become unemployed in Gujarat due to recession and closure of small, medium and large enterprises. There has been a major recession in textile, plastic, diamond, stainless steel industries. At least 1 crore people have been affected by recession and closure of small, medium and large industries. 30 percent of which are from outside Gujarat.
The wealth and business of big industrialists have doubled compared to small enterprises. Thus Modi’s decisions have strengthened capitalism and led to the collapse of small businesses and traders. Scamsters like Vijay Mallya, Nirav Modi, Mehul Choksi, who defrauded banks of billions of rupees, are given safe passage and run away.
18 lakh factories were closed in the manufacturing sector alone, leaving 54 lakh people unemployed.
1.8 lakh manufacturing plants closed in India between July 2015 to June 2016 and October 2022 to September 2023. 54 lakh people working in it have lost their jobs.
This detail has come to light in the annual survey of unorganized sector enterprises.
In 2022-2023, about 1 crore 78 lakh factories were running in the manufacturing sector. Which was 1 crore 97 lakh in 2015-16. There was a reduction of 9.3 percent. The number of people working in it decreased by 15 percent.
The industry has been badly affected by the policy decision.
Most people have their own business or family members work in it. About 54 lakh jobs have been lost in the manufacturing sector.
After Modi came to power in 2016, due to continuous policy shocks, the condition of small units and non-agricultural employment has declined.
Usually outsiders are not appointed in such organizations.
The number of unorganized establishments in the business sector decreased by 2 percent to 2.25 crore during October 2022 to September 2023, from 2.305 crore during July 2015 to June 2016. The number of workers has increased.
In 2018, 80% of the 4 lakh small and medium enterprises in Gujarat were in the grip of recession. 50% were closed. Then the unemployment rate is the highest there.
Unemployment is countless
In the 10 years of Modi rule, there has been a six percent increase in educated unemployed.
India Employment Report 2024 clearly states that unemployment has increased among educated youth in India. The number of unemployed youth with secondary or higher education has increased. The share of educated youth in unemployment was 54.2 percent, which increased to 65.7 percent in 2022.
15 lakh applications for 12 jobs for Police Faujdar and Lok Rakshak recruitment in May 2024. They just got out of college. But what is worse is the layoffs in the private sector.
83 percent of the total unemployed people looking for work in India are youth. While the employment rate has been increasing steadily since 2000, it has declined since 2018.
India should look for some such jobs and invest in them.
Urban migration increases. One has to work in low-paying temporary jobs. Youth do not have the skills to work. 75% of youth cannot send emails with attachments. 60% are unable to copy and paste files. 90% of people cannot put math formulas in spreadsheets. There is an increase in youth unemployment and workforce above 45 years.
Gujarat
Gujarat has a total of about five lakh units out of which 70 thousand units are located in GIDC. In Gujarat alone, 8500 plots and 500 sheds are lying vacant in industrial estates. While 2200 industries are closed. There are 228 industrial estates in an area of 36000 hectares. There are more than 500 private properties in 1 lakh hectare.
In February 2024, from 2020 to February 2024, 35,680 factories out of 3.7 million small and medium-sized factories in India have closed. In which 13,290 units were closed in 2022-23. 6,222 were closed in 2021-22. In which 3,243 small units were closed in Gujarat. Due to the closure of 34 thousand industries, 1 lakh 20 thousand people lost their jobs out of 17 crore jobs.
Textiles
In 2023, although the textile industry in Surat and Ahmedabad was doing good business in the world, out of 400 textile processing units in South Gujarat, 20 large units producing 1 lakh meters of cloth worth Rs 5 crore were closed.
Production of Surat textile industry in Gujarat reduced by 30-40% in 2023.
Production and employment reduced by 50 percent.
Surat is the second largest textile manufacturing hub in India with a turnover of Rs 80 thousand crore after Tirupur in Tamil Nadu.
Employs 20 lakh out-of-state workers.
Compared to 4.5 crore meters of cloth
In 2023, it was 2.5 crore meters per day.
Surat has about 50 thousand textile manufacturing units. The total production in the industry has fallen by about 30%.
Imports of cheap Chinese clothes have increased.
Diamond
More than 40 percent of diamond factories closed due to a 20 percent slowdown in Botad in October 2023.According to industry estimates, the Navratri festival will come later.
70,000 people were employed in 1,500 diamond factories in Botad. 2
More than 40 percent of small and medium factories closed in a month. Surat has 6 lakh diamond polishers and 5 thousand small, medium and large factories. 10 people are employed in one unit. The situation was the same in Surat.
Out of 60 lakh people working in diamond factories, 50 percent became unemployed.
Surat produces 85% of the world’s diamonds.
Surat Diamond Bourse was inaugurated by Prime Minister Narendra Modi on 17 December 2023. Since then there has been a severe recession. With 4,200 office rooms it became the world’s largest office complex, but the recession has broken its back.
A growth of 5.1% was expected in 2023, but the industry is in crisis.
More than 30 diamond artisans have committed suicide in 5 months.
Diamond factories had to be closed for 2 months.
Diamond exports in three months fell from Rs. 77,500 crore to Rs. 60,222 crore.
The US is Gujarat’s major diamond market.
The man-made diamond market was valued at US$1 billion, growing to US$12 billion in 2022, with a compound annual growth rate of 17% and a growth rate of 38% in the last two calendar years.
It will become $37.32 billion in 2028.
Small businesses
In 2014, Gujarat had about 3 lakh registered small and medium enterprises, of which about 95 percent were unregistered. 9 percent of small and medium enterprises closed down.
1500 industries located in GIDC closed down in 2021.
According to the website of the Industrial Director, out of 48 thousand registered factories, 38 thousand factories were operational in 2024 and 9800 factories have closed down.
Stainless steel
In January 2024, about 30-35 percent of medium and small enterprises in Gujarat closed shops between July-September last year due to heavy import load from cheap Chinese. 80 percent of India’s stainless steel is made in small and medium industries of Gujarat.
Out of 80 induction furnace companies in Ahmedabad, 20 companies have closed down. More than 100 re-rollers making utensils have shut down.
China
Modi decided to keep India’s doors open for cheap Chinese imports at the cost of indigenous industries that employ thousands of Indians.
A request was made to impose countervailing duty on Chinese stainless steel. 20 out of 80 induction furnace companies in Ahmedabad have stopped operations. More than 100 re-rollers making utensils have shut down due to cheap imports. Utensils are made of 200 series corrosion-resistant stainless steel. Which small and medium enterprises make in Ahmedabad. Most of these units have stopped operations.
Stainless steel consumption is expected to grow by about 6 to 7 percent in 2023. However, this is the case. China gives subsidies, there is more production there. China’s share in India is 40 percent. Imports have increased by 70 percent. China is dumping.
1800 companies closed
From April 2020 to 29 November 2021, 1,938 companies have closed their business across Gujarat. There were companies in the travel and tourism sector. Despite the closure due to Covid, the government did not help.
20 paper mills closed
By June 2023, out of 100 paper mills in Gujarat, 20 mills closed within 6 months. Closed in Morbi, Ahmedabad, Surat, Vapi. Due to which 26 thousand people have become unemployed. The mills had a demand of 3 lakh metric tonnes. Production has reduced by 50 percent. Exports from Gujarat and Maharashtra were 1.50 lakh tonnes per year, which has come down to 30,000 tonnes. Export destinations were China, Middle East etc.
Each paper mill provides direct employment to 300 people and indirect employment to 1,000 people. The daily production of a mill is 150 tonnes. Paper is used for packaging material. Four mills have been closed in Vapi in two months. Paper mills are located in Vapi and Morbi in Gujarat. Out of 100 paper mills, 20 were in Vapi GIDC of Valsad district.
Plastic
After the ban on the use of plastic, 2000 small businesses were closed. Employment of 50 thousand people was affected. Most of the units are from Halol, Vadodara and Waghodiya of Panchmahal district.
30 thousand units produce plastic in the country. Out of which 90% are small units. Out of which 10 thousand units are in Gujarat. About 80% of which is in the small scale industry sector which is about Rs. Its annual turnover is Rs 10 thousand crore. The total turnover in the country is Rs 38,500 crore. In which a huge recession is being seen. 50 thousand people are directly affected by employment. (Google translation from Gujarati)
