COVID-19 lockdown: Industry losses could go up to Rs 2 lakh crore, says AIAI

The outbreak of COVID-19 could lead to losses of a whopping Rs 2 lakh crore, according to the All India Association of Industries (AIAI).

"There has been a big impact of COVID-19 on trade and industry especially on manufacturing and MSME sector and infra sector," AIAI President Vijay Kalantri said.
He urged the government to come out with a package to see that proper incentives are given to industry and trade to combat the coronavirus impact on industries and also see that they are able to survive.

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"The estimated loss earlier was Rs 20,000 crore. We feel by March 31, the estimated loss will be Rs 2 lakh crore, which is a huge figure, and it will have a great impact on all the sectors of industries across India including daily wagers, automobile, civil aviation and hospitality. Also, there is a need for government to reduce taxes well as the state government should look into ways of reducing taxes and help the industry to survive," Kalantri said in a press statement.

He further added that the government should consider 50% wages to be paid by the government for the month of March because this month has been totally impacted due to coronavirus and industry and trade cannot suffer such heavy losses.

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"We feel the appeal should be seen on priority rather than government still thinking of coming up with a financial package on giving subsidy to industry and trade. This should be on a fast track basis. Government should have discussions with all the stakeholders and not only a few who are based in Delhi, but across India to see what the impact is and how this impact will be there as it is not a temporary impact. It is going to be a prolonged impact on industry and trade," he said.

Kalantri also appealed that the stock markets should be closed for a week like a lockdown that has been done in the case of other industries except the essential services.
He also stated that this is a good opportunity for government to convert this crisis into an opportunity by thinking of having a think tank on how we are able to develop our industries and trade better in times to come. "We hope the state and central government will look into the grievance of trade and industry and manufacturing and infra sectors and request bankers and others to come in support for the industries," he said.

"Today we are seeing that the bankers are still going by the same regulations and the RBI has to relax the guidelines which are there because today, banks are totally monitored by the RBI and there is a need to relax the norms for various authorities and regulatory authorities so that industry could breathe and survive,'' said Kalantri.