FIEO points at ground zero hurdles

The apex industry association of exporters FIEO recently shared with Dr Anup Wadhawan, Commerce Secretary, the feedback from the exporters across the country in conducting business activities after the partial lifting of lockdown. And the note emphasized a series of irritants.

Many states have hitherto not issued the SOP based on which industry will evaluate its preparedness before applying for permission, it said. “Few states like Delhi, Karnataka, Tamil Nadu and Telangana have not provided any relaxation as enumerated by MHA in its revised guideline of 15th April 2020. Many important industrial townships continue to be in the Red zone like Mumbai, Pune, Hyderabad, Ahmedabad, Bhopal, Indore, Kanpur, Agra , Varanasi etc,” it further added.

FIEO’s feedback also highlighted the broader issues for the manufacturing sector. “At a few places in green or rural areas, manufacturing has not started as ancillaries providing important part/ components are in the red zone, thus continuous manufacturing is not viable. In some cases, the industry already has sufficient stock of the manufactured products which should first be put into distribution before commencing production. Similarly, for many auto clusters, the manufacturing hasn’t started as the distribution channels have not been opened yet. A lot of MSMEs are unable to open their factories as they lack the liquidity to purchase the raw materials and other inputs. In many cases, the manufacturing units are unable to procure raw materials as factories producing them are in the Red zone and thus are unable to supply the materials.”

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