Industrial body of Punjab, Chamber of Industrial and Commercial Undertakings protested against notes ban.
The heart of Punjab's industries is Ludhiana. But speak to any small or large scale industrialist in the city today and it is the same story - the centre's notes ban has slowed down business.
On December 16, an industrial body of Punjab, the Chamber of Industrial and Commercial Undertakings or CICU protested against notes ban. A delegation even met Finance Minister Arun Jaitley in Delhi claiming over 30 per cent of the workforce has left Punjab for their native states and 50 per cent production of the industry in almost all verticals has suffered.
Avtar Singh, industrialist and Vice President of CICU, told NDTV that "30-40 per cent workers are standing in queue. We gave them cheques as per the government's suggestion but the worker still has to cash them out. China has hit out industry and now you have killed us with this move."
Labourers standing in line told us they were all from either Bihar or Uttar Pradesh and that they have lost their day's pay because they have had to instead come and stand in line. Sometimes even two days are lost.
Ajay Nayar, an owner of a mall in Ludhiana and India's largest manufacturer of measuring tape, has a turnover of 250 crore. Both his businesses have been hit.
"In the beginning we were affected by 70 per cent, sales came down, this month it has picked up but a one-third drop is still there. My other business it is about 25 per cent down. Layoffs are a big problem. 40 per cent people have gone back but production has gone down so people are not bothered. It will damage the unorganised sector by 60-70 per cent. It has already done the damage," he told NDTV.
Travelling inside the industrial hub, we met Sachit Jain, the joint MD of a 7,000-crore turnover company dealing in steel and cotton yarns. The company has won awards like India's best company to work for, perhaps why the staff had a positive outlook.
"Earlier unnecessary expenses were there. Now thanks to demonetisation we don't have those. Now it is like automatic saving. We are supporting each other and there is Paytm and other similar means we are using," said the workers, almost in unison.
But in reality even this huge company has felt the pinch, something Sachit Jain explained. He told NDTV: "In our textile company there has been a marginal dip in sales. In our steel company a 15 per cent drop in sales. Overall it is a positive move. There is pain but then any change will have some pain. Hopefully the pain won't last too long and we should be back on track."
With the elections around the corner, how important will this slowdown be in deciding who to vote for? Rajinder Bhandari, former BJP state president told NDTV that "this won't affect the elections. Yes, in the short run it has hit Ludhiana but the pain will all go and the benefits will start to show."
Aam Aadmi Party's Bhagwant Mann agreed, saying demonitisation won't have any effect on the election. But indicated why: "Because the people of Punjab are already fed up with the Akali-BJP government. More so, it would affect those who have money. Workers who earn 100 rupees have been troubled. One day to earn, three days in line to get what you earn. How is that fair?"
Most industrialists - small and big - believe the industrial slowdown is temporary but if this situation does not improve by the time the Punjab elections come, the voter may lose confidence in the BJP-Akali alliance, something the Congress and AAP are already trying to capitalise on.