New Delhi: The havoc of Corona is proving to be havoc for the Indian economy. In the last two months, export orders worth $ 25 billion (about Rs 1.88 lakh crore) have been cancelled and apparel exports worth $ 4 billion (about Rs 30,000 crore) are stuck. The reason for apparel export getting stuck is that due to the lockdown, the local administration is not allowing factories to function.
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Production has been completely closed since last month and people's employment is at stake. 50 to 60 percent of exports in all export sectors have been cancelled. Ajay Sahai, director general and CEO of the Federation of Indian Exports (FIEO), an exporters' association, says that about 50 to 60 per cent of the export order of the entire export sector has been cancelled. In the apparel, leather, handicraft and carpet sectors, more than 80 percent of exports have been cancelled. Sahai said, "Export orders worth about $ 25 billion have been cancelled in just two months."
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Vilas Gupta, managing director of Tars Englobe Ltd, a company operating from Noida Special Economic Zone (NSEZ), said that "we are facing a very big challenge". Gupta was not merely talking about his company. Out of 262 manufacturing units of NSEZ, only 15 are in operation. These 15 units are such that produce essential goods like medical goods. This is the situation when the Central Government has given clear instructions that factories working within the AEZ can work with necessary safety measures and 50 per cent employees.
