Federation of Indian Export Organisations (FIEO) has said that India’s exports sector may witness about 15 million job losses and rising non-performing assets (NPAs) amongst exporting units, following the cancellation of over 50 percent of orders and gloomy forecast for the future due to the Covid-19 pandemic. Seeking urgent announcement of a relief package for exports, 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.
Saraf has stated 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 fixed cost that in any case has to be absorbed by them. He noted that sectors including apparel, gems and jewellery, leather, handicrafts, engineering and textiles are severely hit by the lockdown.
FIEO President said ‘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 also said that any further delay in rolling out of incentives would be catastrophic. Therefore, he recommended steps such as 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.