Covid-19: 15 million export jobs at stake
More than 15 million jobs could be lost in India’s export sector due to lockdown. Half of all orders are getting cancelled and units are unable to repay loans
More than 15 million jobs could be lost in India’s export sector due to lockdown
Half of all orders are getting cancelled and units are unable to repay loans
The apex body of exporters fears an irreparable damage in the industry due to Covid-19
The cancellations and postponement of shipments have impacted exporters’ fund-liquidity position
Sharad Kumar Saraf, president, Federation of Indian Export Organisations, said the future seems gloomy
“With cancellation of over 50% of orders,we expect 15 million job losses in exports"
"Rising NPAs amongst exporting units are hitting the economy badly,”
Labour-intensive sectors such as leather, gems and jewellery, handicrafts and textiles will be worst hit
The apparel exports sector estimates 2.5-3 million job losses because of order cancellation
The losses are further mounting up as the buyers are not clearing the dues.
The apparel sector employs about 12.9 million people and around 70% of apparel units are MSMEs.
The handicraft sector has pegged job losses at 2 million
The gems and jewellery export sector are yet to finalise the loss estimates
The engineering exports sector could lose an estimated 50,000-75,000 jobs.
The textiles and garments sector is the second largest employer after agriculture with around 32 million people.
The bulk of this employment is unorganised and includes workers on contract
Labour is the largest cost in the industry, with wages amounting to 25-30% of the cost of production
The International Labour Organisation said about 400 million workers in India might get affected
The overall losses in the industry have created a challenge to retain the skilled labour
The export industry has demanded government for a relief package immediately