With the country being in a lockdown, manufacturing activities have come to a grinding halt and the situation is now posing a threat to exporters who fear China will take over the market.
With the country being in a lockdown, manufacturing activities have come to a grinding halt and the situation is now posing a threat to exporters who fear China will take over the market. Since China has already started its manufacturing units, export industry representatives have sought help from the government stating that if manufacturing doesn’t resume soon in India too, it will have serious consequences for the exporters. The industry has also sought sops in order to pay wages to the workers, The Indian Express reported. Speaking to Union Commerce and Industry Minister Piyush Goyal on Monday, exporters said the same fate awaits them as happened to certain pharmaceuticals exports.
“We conveyed that the problem is once you cede the ground to any country, particularly China, it is very, very difficult to get back,” Ajay Sahai, Director General of the Federation of Indian Export Organisations, said, the newspaper reported. In the light of the same, they have sought to begin production with half of the manpower or less.
Among other proposals to the government, the industry has asked for exemption from statutory payments like ESI contribution. There will be a time when we won’t be able to pay anybody, Shyamal Ghosh, Chairman of the Telecom Equipment and Services Export Promotion Council, said. He said that the government has noted their suggestions and demands.
Meanwhile, the headwinds of coronavirus are also causing serious disruptions to the country’s economy with practically everything being shutdown as the disease continues to spread. India has been put under a 21-day lockdown that is expected to be lifted on 15th April 2020. As economic activities remain suspended, Finance Minister Nirmala Sitharaman had also announced economic relief to daily wage workers, migrant laborers, women and the disabled people to cushion the blow of the virus. She had announced a Rs 1.7 lakh economic booster for the most vulnerable sections of the society.