SOS call for exports as sector may lose over 15 million jobs unless immediate relief is announced: FIEO president
Says huge support given by various economies to exports will put Indian exports in further difficulties
Ludhiana: Sharad Kumar Saraf, President, FIEO, in a statement today, reacting to the extremely lowered forecast for the global trade in 2020 by the WTO and ILO report highlighting that economy in India is at risk of falling deeper into poverty due to the Coronavirus crisis which is having serious consequences, Mr Sharad Kumar Saraf, President, FIEO said that a fine balancing is required between life and livelihood, as opting for the one can be disastrous for the country.
President FIEO said that we are left with very less orders and if factories are not allowed to work with a minimum work force to execute them timely, many of them will suffer irreparable losses and bringing them to the brink of closure as they are saddled with fixed cost, which in any case has to be absorbed by them. With cancellation of over 50% of orders and gloomy forecast for the future, we expect 15 million job losses in exports and rising NPAs amongst exporting units, hitting the economy very badly.
Saraf urged the Government to immediately announce a relief package for exports as any further delay would be catastrophic. He urged the Government to cover the following in such package:
• Allow exports related manufacturing immediately with minimum work force adhering to safety, sanitization and social distancing norms.
• Covid Interest free Working Capital Term Loan to Exporters to cover the cost of wages, rental and utilities.
• EPF and ESIC waiver for 3 months from March to May, 2020.
• Extension of Pre and Post shipment credit by 90-180 days on their maturity, Roll over of forward cover without interest and penalty, automatic enhancement of limit by 25% to address liquidity challenges and extension of Interest Equalisation Benefits.
President FIEO said that the 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.