Mobility paves Samsung’s silver path
The Korean giant’s early bet on mobile phones helped it hit the $10-bn mark in India, but in its 25th year it ...
Ravi Sehgal,Chairman EEPC - Debasish Bhaduri
Indian engineering exports can “witness a bounce-back” if a “graded-exit” to the lockdown and a phase-wise resumption of manufacturing activities take place.
Quicker resumption of economic/manufacturing activities will also help “garner confidence in international quarters” about India’s resilience, according to Ravi Sehgal, Chairman, EEPC.
Indian exports already had a challenging 2019-20 with protectionist measures coming into effect across major markets like the US and Europe; a trade war between China and the US; and an overall slowdown in economic activity across select geographies. The coronavirus outbreak was the last thing to hit exporters.
According to him, normalcy in transportation, working out labour shortages and ensuring liquidity for manufacturing units are the immediate challenges.
India’s lockdown has now entered its second phase with attempts being made by the Centre and the State governments towards resumption of economic activity while maintaining safety protocols.
“International queries are coming in already. In this backdrop, if there is some resumption of economic activities, then India’s international image gets a boost. This will also boost confidence in the international community (about the country’s resilience),” Sehgal told BusinessLine, during an interview.
Essential services in Europe, the US and the West Asia continue to operate. The spares used in such essential service operations are primarily exported from India. “If we lose out on orders now, other countries like Brazil or Turkey could gain,” Sehgal explained.
EEPC recently undertook a market sanitisation drive in Kolkata, following a request by the West Bengal Chief Minister.
India’s engineering exports stood at $81 billion in FY19, and at $76.3 billion in FY20. The pick-up in demand witnessed towards the last quarter of this fiscal was hit with orders being stuck because of the lockdown.
Another $4 billion worth of goods is held up across State borders with the lockdown coming into effect at State levels early to mid-March). The movement of consignments in March was stalled and some of the nations delayed placing orders, in view of the Covid-19 pandemic.
At present, India is receiving only 20 per cent of its normal orders. Against an approximate $4-5 billion worth of monthly orders, present ones are hovering at around $1 billion, or a little more.
There is also a probability that if resumption happens now there is a chance of reaching 50 -60 per cent operational levels by May-June. A very optimistic outlook, by market sources, is that there could be 70 per cent recovery in turnover by the end of this year, if economic activities resume.
He added that by May first week, production is likely to resume across units (in green zones).
Another burning issue is the immediate liquidity crunch that MSMEs face. Fixed costs like electricity charges and other expenses continue to recur. Staff salaries also need to be paid. Refunds also have to speed up.
“Moratoriums and delayed payments on loans are helpful. But the cash crunch is at a working capital level for MSMEs. Something should be done at that end too,” he said, adding that suggestions range from refund or remission of duties and taxes to availability of steel at “export prices”. These could help boost cash availability.
This apart, all eyes are now set on the probable economic relief that the Centre may announce.
The Korean giant’s early bet on mobile phones helped it hit the $10-bn mark in India, but in its 25th year it ...
Antrix should adopt a different tactic than merely fighting over jurisdiction: Experts
Invest in relationships, enterprise, behaviour, effort and learning
From different types of osmoses to new membranes, researchers have come up with ways of drawing water
Will a stock continue its current trend or will it reverse? We tell you how you can read chart patterns to ...
₹1483 • HDFC Bank S1S2R1R2COMMENT 1465145015001510 Fresh short positions can be initiated with stop-loss at ...
Bucking the overall market trend, the stock of Capri Global Capital Limited (CGCL) gained on Monday and ...
Most AMCs have been sending out cryptic e-mails. We tell you how to read between the lines
In these isolated times when people yearn for a slice of the familiar, amateur and professional chefs are ...
Writer Narendra’s latest book, rich with vignettes from Bastar and his native village in Uttar Pradesh, ...
On the eve of his 86th birthday, a peek into an interview-based book that reveals the actor’s many moods, ...
Forget the tuna. The island nation will keep you full and happy with coconut, koftas and jasmine
Digital is becoming dominant media, but are companies and their ad agencies transforming fast enough to make a ...
Slow Network, promoted by journalist-lyricist Neelesh Misra, pushes rural products and experiences
How marketers can use the traditional exchange of festive wishes meaningfully
For Fortune, a brand celebrating its 20th anniversary, it was a rude shock to become the butt of social media ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...
Please Email the Editor