Pune region reports drop in industrial production

By: |
May 05, 2021 12:16 AM

Various companies said their current level of production has decreased from 85% in February to 69% in April. Large companies had reached 93% levels of pre-pandemic production, but has now come down to 69%.

If there were any more restrictions it needed to come along with increased level of economic activities and not reduced as it had an impact on livelihoods, he said.

Production level at companies in the Pune region has come down to 69% in April and the gains made till March this year to get close to the pre-pandemic levels have been lost with new restrictions in place.

Various companies said their current level of production has decreased from 85% in February to 69% in April. Large companies had reached 93% levels of pre-pandemic production, but has now come down to 69%. The figures were based on a survey of 150 companies in Pune district by the Mahratta Chamber of Commerce, Industry and Agriculture (MCCIA).

Sudhir Mehta, president, MCCIA, said supply chains were once again disrupted and they were concerned about the small, informal manufacturers and contact-based services. The governments at the Centre and state must front-load their allocations for MSMEs, industries and infrastructure development in FY21-22, Mehta said. Nearly half of the companies surveyed had reached their production to pre-Covid levels by February’21 but by March only 24% companies said their production was at pre-Covid levels.

Around 19% respondents said they would take around three months to take their production levels back to the pre-Covid levels.

A majority of 57% industries said they expected it to take three to six months and some more than six months to reach the levels before the pandemic hit. Given the heightened levels of restrictions, the drop was expected but this time it was not as bad as it was in April 2020, Prashant Girbane, director general, MCCIA said. If there were any more restrictions it needed to come along with increased level of economic activities and not reduced as it had an impact on livelihoods, he said.

Nearly 68% of the companies surveyed were MSMEs while 32% were large scale companies. Around 66% of the organizations surveyed were from the manufacturing sector, 14% from the services sector and the rest were involved in both manufacturing and services.

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