Prime Minister Narendra Modi announced on April 14 that the lockdown will be extended until May 3. Disappointed with this decision, the Federation of Indian Export Organisations (FIEO) said there needs to be a calibrated approach on the opening of the economy.
"Other COVID-19 affected countries have opened their economy in a calibrated manner. MSMEs will not be able to start even if there is some relaxation. How can workers be paid when there is no money? We expected the prime minister to come out with some economic measures," says Sharad Kumar Saraf, President, FIEO.
Saraf suggested the government should allow 40-50% labour force to operate. Adding that there is absolutely no logic in exports to not start, he says social distancing can be maintained even while ensuring operations run in a smooth manner.
PM Modi announced that after taking cognisance of the situation by April 20, certain areas may be allowed to open up certain industries.
Saraf says that even if industries are opened up on April 20th, all export orders would have been cancelled by then. Revival in exports will be extremely difficult. Further, there is an issue in completion of paperwork as workers are unable to go to their offices to file the requisite paperwork.
According to FIEO, there is more than 50% revenue loss due to the lockdown. The job losses in the export industry may cross 15 million, across sectors.
The sectors which will be adversely impacted include textile, jewellery, handicrafts and gems.
Source:- moneycontrol.com