Economic watershed of lockdown

News Desk

It can take up to one year to come out of the we economic instability caused during the lockdown, says a survey report.

Movement of labour and raw material are the hurdles faced by businesses allowed to resume operations amid the lockdown, the Confederation of Indian Industry (CII) has said. The findings are part of a nationwide survey conducted by CII last week to determine the effectiveness of the exit from lockdown in specific zones and sectors.

The CII survey indicated permits for enterprises, passes for workers and supply chain movement are the key hurdles for industry in exit. The survey had companies out of which 65% said in the April-June quarter a fall of about 40% in income could be seen.

The survey indicate the economic slowdown might remain in the country for long. IN all 45% of the CEOs who took part in the survey said after the lockdown is over it can take up to one year to bring back the normal situation. Over 300 CEOs participated and gave views in the survey. In all 66% CEOs were from micro, small and medium industry units.

As far as career and jobs are concerned majority felt that their sectors will see reduced opportunities. In all 45% said it could be that 15 to 30 percent jobs might be lost while two-third said there was no salary cut in their companies.

CII said that lockdown has made adverse impact upon economic activities. If the fiscal 2020-21 is talked about 33% companies said their income might see a loss of 40%. In all 32% companies said their income may fall by 20 to 40 %. Three out of four companies in the survey said complete closure of the units was the biggest hurdle. Whereas 50% said fall in demand is the biggest challenge.

DG, CII Chandrajeet Banerjee said that lockdown was necessary for coronavirus but it has made impact upon economy. The demand to day is for package for the industries so that economic activities can be taken forward and save livelihood.