Slowdown shut 1,258 small units, cost 83,190 jobs

As many as 1,258 enterprises shut shop in the last three years, according to government data that suggests small industries were facing a hard time even before the economic repercussions of the Covid-19 pandemic made things worse.

The closure, according to the government, resulted in 83,190 people losing jobs.

Data tabled in the Assembly show that 2020 was the worst year for industries. It shows that 17 large industries also closed primarily due to financial problems they faced.

In 2020, 562 small industries closed resulting in 31,722 people losing jobs. In 2019, which was not a pandemic year, 504 small firms that employed 36,605 people closed.

The pattern of closures continued even in 2021 when all efforts were made to revive the pandemic-hit economy.

The number of industries that shut shop was 192, which affected 14,863 employees. During the three-year period, 49,946 men and 33,244 women lost jobs.

These details were provided by Labour Minister Shivaram Hebbar to a question by Congress MLA Priyank Kharge.

Details on the large industries shut in the state in the last three years show that seven of the 17 were located in Bengaluru Rural, three in Bagalkot, two in Gadag and one each at Ramanagara, Kolar, Dakshina Kannada and Chitradurga districts. Financial problems and lack of raw material supply were among the key factors for closure.

Investment

Meanwhile, the State Level Single Window Clearance Committee and State High Level Clearance Committee have approved 1,166 projects since 2018-19.

These projects are expected to attract an investment of Rs 1.42 lakh crore creating employment for 4,51,189 people. However, it takes three to four years for the investments to materialise, according to a written reply by Industries Minister Murugesh Nirani. Karnataka attracted most of the investment in 2020-21 worth Rs 47,258 crore, followed by Rs 41,401.3 crore in the current fiscal.

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