The ongoing restrictions coupled with the potential for a 3rd wave of COVID-19 have shaken the arrogance of small and medium-sized enterprises and most imagine that there’s little to no full restoration by way of manufacturing and turnover. It will take not less than one yr.
Industries had seen a wholesome interval of restoration after the primary wave of Covid, reporting pre-pandemic ranges of manufacturing and employment. But the severity of the second wave and the next lockdown has stalled the restoration. A month-to-month survey of business actions in Pune districts confirmed that 78 per cent of the respondents believed that restoration would happen solely after six to 9 months.
Rising uncooked materials costs and heavy uncertainty within the markets are the primary causes for the delay in restoration. Sandeep Belsare, president of Pimpri-Chinchwad Small and Medium-Sized Industries Association, mentioned that the slowdown within the vehicle sector has rendered many industries within the space unemployed. “During the second lockdown, the sales of vehicles declined. Automobile manufacturers are in no hurry to produce as they have ample unsold stock. Thus, their vendors and sub-sellers are without any immediate work,” he mentioned.
In the capital items sector, the scenario has worsened with the rise within the costs of uncooked supplies by nearly 100%. Units that had orders at the moment are caught with orders at earlier charges. “At past prices, it has not become financially viable for many people to fulfill their orders,” he mentioned.
“There is a clear lack of trust in the industry. People will not invest in new cars for long. The situation is getting worse with the advent of electric vehicles. Automobile manufacturing will be affected and there is a real risk of a prolonged slowdown. Most industries will be forced to lay off people as they will not be able to pay even basic wages,” mentioned Abhay Bhor, president of Forum for Small Scale Industries.
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With inputs from TheIndianEXPRESS
