Global recession casts shadow over local industry: The Tribune India

Tribune press service

Shivani Bhakoo

Ludhiana, August 30

Local manufacturers are very worried due to the ongoing global recession. If exporters are to be believed, stocks worth several crores of rupees are piled up at manufacturers as a major US multinational chain has either suspended large shipments or canceled them.

Speaking to The Tribune, SC Ralhan, who specializes in the hand tool industry, said: “Covid has changed the whole scenario and the mindset of people around the world. Now people focus more on health, daily use products, groceries rather than luxury items. Oil and gas prices are on the rise in Western countries. People started to invest more in basic necessities rather than other accessories. Due to this change, exports also fell.

Major Punjab-based business houses have suffered heavy losses due to canceled orders and increased inventories.

Meanwhile, Customs Department sources agreed that there was up to a 25% drop in imports, but overall exports had increased. Speaking about the company specifically, the official added that there might be some factors for which inventory has not been lifted, which the department is not aware of, but overall exporters many sectors were delighted with the increase in exports.

Giving the reason for the drop in imports, the official said one of the factors was the “Make in India” campaign. Local manufacturing was getting a boost and confidence. The government has offered attractive schemes to boost local manufacturing, the official added.

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