MSMEs, others in consumer durables, electronics recover beyond pre-Covid mark; these sectors still in red

By: |
November 11, 2020 4:27 PM

Ease of Doing Business for MSMEs: Sectors nearing year-ago performance included food and grocery that has recovered to 90 per cent and furniture/furnishing to 89 per cent.

Electronics exports from the country can potentially grow from $11.28 billion in FY20 to $180 billion in 2025, as some estimates suggest.Festive season is the biggest bet for retailers looking for a quicker recovery from the Covid impact. (Representative image)

Ease of Doing Business for MSMEs: Even as retailers in majority sectors are yet to recover back to the year-ago level, businesses in consumer durables and electronics seem to be scaling back relatively faster. Among key sectors viz., quick service restaurants, beauty/wellness, sports goods, furniture, jewelry, footwear, food and grocery and apparel, consumer durables and electronics segment has been able to not just hit October 2019 level growth but also exceeded by 8 per cent, according to the latest monthly survey by Retailers Association of India. Other sectors that are nearing year-ago period performance included food and grocery (90 per cent recovery) and furniture/furnishing (89 per cent recovery).

“Till October, retail recovery was up by around 70 per cent but I think many of them have adjusted it to Diwali since last year the festival was in October. so festival adjusted recovery is around 80% compared to the same period last year,” Kumar Rajagopalan, CEO, RAI had told Financial Express Online. The survey noted that retail sector, which is MSME dominated, has recovered 69 per cent in October vis-à-vis October 2019 level.

Also read: Hunar Haat: 5 lakh job opportunities in 5 years for artisans created via govt’s craft fair, says Naqvi

Importantly, out of pan India, the Southern part has recovered the most in comparison to other regions. While retailers in the South have recovered 76 per cent during the said period against 72 per cent for retailers in the North, 57 per cent for the West, and 73 per cent for the East during October 2020.

The festive season is the biggest bet for retailers looking for a quicker recovery from the pandemic impact even as the government has been urging people to prefer locally manufacturing goods over imported products as part of its Vocal for Local and Make in India campaigns. In response to the need to push local products and boycott Chinese goods, traders’ body CAIT had last month claimed that the boycott may cost Chinese exporters to India Rs 40,000 crore business loss during Diwali season out of the overall Rs 70,000 crore business done in India during the season by traders.

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