COVID-19 pandemic and the 21-day lockdown has adversely impacted the economy of the nation. A recent industry poll has suggested that many Indian companies believe that it has significantly impacted their revenue and profits.
According to the recent survey conducted by Confederation of the Indian Industry (CII) of almost 200 companies, majority of them are expecting a decline in revenue by over 10 per cent and profits by around 5 per cent in the first quarter of the current financial year.
The poll also indicated that around 52 per cent of the CEOs across the sector believe the loss incurred by the pandemic would result in the job losses ranging from 15 per cent to 30 per cent in the respective sectors.
At least 40 per cent of the companies said that their stock might last beyond a month following the lockdown ends while about 80 per cent firms already have inventory lying idle. The data suggests of a probable slowdown in the demand even after the lockdown ends.
To tackle the situation, India Inc has asked the government for a package that would give stimulus to the troubled private sector. Speaking on the demands on the industry, the Director-General of the CII, Chandrajit Banerjee said, “The government could announce a fiscal stimulus for the industry and implement it on fast track mode, given that the sudden imposition of the lockdown has significantly impacted industry operations and the uncertainty of a recovery threatens substantial loss of livelihoods going forward.”
Moreover, FICCI (Federation of Indian Chambers of Commerce and Industry) has asked the government for additional liquidity for NBFCs. It has also demanded one time loan restructuring to tackle the long term impact of the deadly virus on the industry.