The All India Manufacturers’ Organisation has projected a 60% drop in employment in the micro- and small-scale industries by March 2017, according to a report in The Indian Express. The industry suffered 35% job losses and a near 50% dip in revenue in the first 34 days since the demonetisation decision was announced on November 8, according to the study conducted by the body, which is India’s largest organisation of manufacturers.

AIMO, which represents over three lakh micro-, small-, medium- and large-scale industries, said that nearly all manufacturing activities had come to a standstill. The medium- and large-scale industries that engaged in infrastructure projects had reported a 35% cut in employment and a 45% loss in revenue. Export-oriented companies are likely to see a 35% loss in employment by March 2017, according to the study published by The Indian Express.

The report attributed the losses in the sector to a number of factors, including the countrywide cash crunch, uncertainty over the status of the Goods and Services Tax, limits on cash withdrawals at banks and ATMs as well as a weaker rupee.

AIMO National President KE Raghunathan told The Indian Express that the organisation had forwarded their findings to the ministries of finance and commerce three times in the last two months, but they had yet to receive a response. “They turned a blind eye towards this emergency situation,” he said, adding that the industries in Maharashtra and Tamil Nadu were affected the worst.