Udayavni Special

Exports sector may witness 15 million job losses, increase in NPAs: FIEO


PTI, Apr 10, 2020, 5:16 PM IST

New Delhi: About 15 million people face job losses in India’s exports sector following cancellation of over half of the orders and gloomy forecast for global trade due to the COVID-19 pandemic, exporters’ body FIEO said on Friday.

Seeking immediate announcement of a relief package for exports, Federation of Indian Export Organisations (FIEO) President Sharad Kumar Saraf said a fine balancing is required between life and livelihood, as opting for only one can be disastrous for the country.

He said that exporters are left with “very” few orders and if factories are not allowed to work with a minimum workforce, many of them will suffer “irreparable losses” which will bring them to the brink of closure as they are saddled with a fixed cost that in any case has to be absorbed by them.

“With the cancellation of over 50 per cent of orders and a gloomy forecast for the future, we expect 15 million job losses in exports and rising NPAs (non-performing assets) amongst exporting units, hitting the economy very badly,” Saraf said.

He added that sectors including apparel, gems and jewellery, leather, handicrafts, engineering and textiles are severely hit by the 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 too have announced relief packages,” he said.

Saraf added that any further delay in rolling out of incentives would be “catastrophic”.

He recommended steps like interest-free working capital term loans to exporters to cover the cost of wages, rental and utilities; EPF and ESIC waiver for three 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.

“Huge support given by various economies to exports will put Indian exports in further difficulties as when the size of the cake reduces, competition intensifies with focus on prices,” he added.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

K’taka COVID-19 update: 998 new cases, 2209 discharges, 13 deaths on Nov 29

Red Alert for 4 Kerala districts; CM asks people to be vigilant

No connection between cabinet exercise and announcement of panchayat polls: CM BSY

PM attacks oppn parties, says they play tricks on farmers

No social distancing at protest, farmer leaders says new laws bigger threat than COVID

Most important challenge facing region is terrorism: India at SCO

PM Modi visits Varanasi, dedicates to nation six-lane highway



Related Articles More

Mankind Pharma announces Mohanlal as corporate brand ambassador

Indian banks to see capital decline over 2 years without fresh infusion: Moody’s

Govt waives penalty for non-compliance with QR code provisions for B2C transactions

GM veteran to head Ola Electric’s manufacturing and ops

RBI likely to maintain status quo for 3rd straight time on inflation concerns

MUST WATCH

What is the importance of Ayurvedic medical system in treating diseases?

Success story of a couple In Agriculture | Integrated Farming

Meet the man with the largest collections of Newspapers | Umesh Rao Ekkar Mangalore

Mangalore: Woman rescues a cat from 30 feet deep well | Ranjini Shetty | Udayavani

CM and central leadership will take final call on Cabinet expansion: Ashwath Narayan

Latest Additions

K’taka COVID-19 update: 998 new cases, 2209 discharges, 13 deaths on Nov 29

2021 Tibetan parliament-in-exile elections sees 80K registered voters: Official

Red Alert for 4 Kerala districts; CM asks people to be vigilant

Bhupinder Hooda Hits out at Haryana CM over Remarks on Use of Water Cannons Against Farmers

Cyclone Nivar Extensively Damaged Crops in Over 6.59 Lakh Hectares in Andhra Pradesh, Says Minister

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.