The export orders have fallen by more than 25% to 30% in last two months. It is feared that if the crisis prevails in the next few months, more than 50000 workers will be rendered jobless in this industry. The industry provides employment to the weaker section of the society including women. The labour is scattered in and around two major manufacturing centers i.e. Jalandhar in Punjab and Meerut in UP
As per recent survey conducted by Sports Goods Export Promotion Council (SGEPC) with few top exporters, business worth Rs. 45 Crores has already been lost by them collectively. This figure, when compared with total export of Rs 500 crores is sizeable. Main countries importing sports goods from India are Europe, USA & Australia. Since recession has gripped these countries/regions, the meltdown is being felt by the Indian Sports Goods Industry. Moreover sports goods are considered as leisure time items & not necessities.
Consumer spending is automatically diverted to necessities in the time of recession. Further slow down in the industry is also expected in the coming few months, if no relief is provided by the Govt. Most of the buyers are adopting the policy of wait & watch before placing fresh orders. Not only that, but the buyers have issued instructions to delay the shipments which are ready for dispatch in the factories of sports goods manufacturers, leading to rise in inventory.
The Sports Goods & Toy sector has even been ignored in the recent fiscal package announced by the Govt., despite the fact that this sector has been declared as a labour intensive sector in the Foreign Trade Policy announced by the Govt. in the beginning of this year.
Sports Goods Export Promotion Council (SGEPC) has already submitted a Memorandum to the Minister of Commerce & Industry to include this sector in the special package being announced by the government for Labour Intensive Sectors.