AHMEDABAD: At a time when the state government is making aggressive efforts to woo global investors into Gujarat in the run up to Vibrant Gujarat Global Summit (VGGS) 2019, Gujarat Chamber of Commerce and Industry (GCCI) has sounded an alarm bell about the worsening industrial sickness prevalent in the state. According to GCCI, the industrial production in Gujarat fell by 40% over the past year and a half, due to improper policy implementation.“There are multiple factors starting from demonetization to inadequate implementation of Goods and Services Tax (GST) to the economic uncertainty whose cumulative impact was adverse on the industries . As a result, operational costs went up while payment cycles got elongated by 45-60 days across all the sectors,” said Jaimin Vasa, president, GCCI, while interacting with the media on Friday.“Furthermore, the recent rise in crude oil prices and devaluating currency further dented revenues of businesses, particularly Micro Small and Medium Enterprises (MSMEs),” he added.“We don’t want this situation to shake the investor confidence during VGGS 2019 and therefore, have decided to take up the issue with the government. GCCI has prepared a list of recommendations suggesting immediate remedial measures to be taken for improving the economic situation of industries, particularly micro small and medium enterprises (MSMEs) in Gujarat,” he further added.GCCI representatives also highlighted that the industrial sickness is a major issue that plagues the state. “Industrial sickness has deepened in Gujarat over the past 4-5 years. The situation of MSMEs is worse as they do not get financial supports once they are sick. Necessary measures are the need of the hour for units which are at incipient sickness level to further prevent shutdown of the units,” Vasa added.GCCI also said that several small and medium units in Surat and Saurashtra are staring at a shutdown, amid delays in input credit refund.GCCI also raised concerns over the state government’s approach towards MSMEs citing perpetual delays in processing refunds. Nayan Sheth, chairman – GST Committee, GCCI, said, “Refunds under GST are delayed till date, especially for the textile sector wherein there is an inverted duty structure. Despite an online system being in place, the red-tapism continues.”