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LATEST NEWS UPDATES | Revisiting demonestisation: 'If the notes have come back, why not the lost jobs?' -Abhishek Dey

Revisiting demonestisation: 'If the notes have come back, why not the lost jobs?' -Abhishek Dey

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published Published on Sep 11, 2017   modified Modified on Sep 11, 2017
-Scroll.in

In Delhi’s largest industrial area, many are still struggling to find work.

“If 99% of the demonetised currency has returned [to the banking system], then why haven’t the jobs that demonetisation took away from us come back too?” asked Bajrang Yadav, 45, standing in a waterlogged lane outside his home in a slum cluster in West Delhi’s Mayapuri area last Sunday.

Yadav was referring to the Reserve Bank of India’s annual report that had been released on August 30. It said that Rs 15.28 lakh crore worth of cash had returned to the banking system by June 30, nearly eight months after the government had decided to invalidate Rs 1,000 and Rs 500 notes worth Rs 15.44 lakh crore overnight. The demonetised notes accounted for 86% of Indian currency in circulation at that time. It took several weeks to print and distribute new notes, causing a cash crunch that crippled the economy for months.

When Scroll.in visited Mayapuri weeks after demonetisation, workers in the largest industrial area within Delhi were still struggling to exchange old notes – many employers had paid out wages in the demonetised currency. Eventually, as orders dried up, many factories shut down.

Mayapuri is a magnet for migrants from all over North India – Uttar Pradesh, Bihar, Rajasthan, Madhya Pradesh, Jammu and Kashmir. Some of them have come from as far as West Bengal. Slum clusters that have grown around the industrial area house more than 3,000 families.

Yadav, from Pratapgarh district in Uttar Pradesh, had spent 23 years working in a small-scale gear-box manufacturing unit in Hari Nagar industrial area, adjoining Mayapuri. He was one of the 16 workers in the engineering department. By December 2016, all of them had been laid off.

The middle-aged worker left the national capital for his village but he could not find any work there. In February, he came back to Mayapuri with the hope of getting his job back. But his employer had already hired eight new employees in the engineering department. He insisted he could not hire any more workers as the unit’s capacity had fallen by half. By September, the number of workers in the unit rose to 12, but Yadav was not lucky enough to find himself among them. “If I was not productive enough, why did the employer keep me for 23 years?” he asked.

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Scroll.in, 11 September, 2017, https://scroll.in/article/849457/revisiting-demonestisation-if-the-notes-have-come-back-why-not-the-lost-jobs


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