Northern industries body for staggered opening of economy from May 3

Cites liquidity crunch as their biggest concern, followed by supply chain bottlenecks and labour shortage

The Confederation of Indian Industry (CII) conducted a snap poll to assess the impact of the lockdown due to Covid-19 among 70 CEOs from CII Northern Region. The participants have opined that the lockdown is likely to deeply impact Indian businesses if the economy isn’t opened soon.

In a virtual snap poll, as many as 70 CEOs of CII Northern Region said they expect government support in the payment of wages to industries impacted by the lockdown along with a waiver of fixed utility charges and low interest rates. (HT photo)

More than four-fifths of the respondents said the Government of India should consider staggered opening of the economy post May 3, to put it back on growth track and at the same time, control the spread of the virus. When asked to rank pressing challenges faced by India Inc, a majority (58%) of the respondents cited liquidity crunch as their biggest concern, followed by supply chain bottlenecks and labour shortage.

Also, majority of the respondents expect significant decrease in their companies’ topline and bottom-line during the year 2020-21. More than 10% fall in employment opportunities is also expected.

The CEOs also said they expect government support in the payment of wages to industries impacted by the lockdown along with a waiver of fixed utility charges and low interest rates.

Commenting on the poll, Nikhil Sawhney, chairman, CII Northern Region, said, “The results indicate the mood of Indian industries. The MSME sector that provides significant amount of employment opportunities will need stimulus from the government to get back up on its feet.”