With cancellation of more than 50 per cent of orders and gloomy forecast for global trade due to the Coronavirus pandemic, India’s export sector may witness 15 million job losses said exporters' body Federation of Indian Export Organisations (FIEO).
“With the cancellation of over 50% of orders and a gloomy forecast for the future, we expect 15 million job losses in exports and rising Non-Performing Assets (NPAs) amongst exporting units, hitting the economy very badly" stated Sharad Kumar Saraf, President, FIEO.
The exporters’ body has also sought immediate announcement of a relief package for exports from the government.
As per Saraf, sectors such as apparel, gems, and jewellery, leather, handicrafts, engineering and textiles are severely hit by the countrywide lockdown.
"We are losing markets to China. All orders are going to China as they have resumed work. It will be very late if we will not start our factories now. Small economies like Bangladesh and Sri Lanka to have announced relief packages."
He also recommended steps like interest-free working capital term loans to exporters to cover the cost of wages, rental, and utilities; employee provident funds and Employees' State Insurance Corporation's waiver for 3 months from March to May; extension of pre and post-shipment credit by 90-180 days on their maturity, and extension of interest subsidy benefits.
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