COVID-19 may force 90% of big firms to shun imports

A whopping 90% of Indian companies will have to look for local supplies of raw materials once economic activity resumes post-lockdown, according to a new survey.

With the pandemic disrupting imports, more than half of the companies fear their sales will not look up in the next six months.

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A survey of 190 companies with a turnover ranging from Rs 1 crore to Rs 98,000 crore showed around 77% felt the pandemic will leave demand disrupted in the economy.

The survey conducted by the Federation of Indian Chambers of Commerce and Industry found a majority of them were planning to invest to serve customers through digital means as they fear social distancing norms would have led to behavioural change due to the outbreak.

At least 55% of the participating firms felt the economy will perform “substantially worse” in the next six months, and only about 37 to 38 of the surveyed firms said they foresaw hiring new employees till about September.