Nine sectors will take time to revive; will need package: IIA

The Indian Industries Association (IIA) has sought help from the Centre for revival of nine prominent sectors which are likely to suffer for a longer time even after the post-lockdown period.

The Indian Industries Association (IIA) has sought help from the Centre for revival of nine prominent sectors which are likely to suffer for a longer time even after the post-lockdown period.

Of 16 prominent sectors that propel economy, nine such as tourism, automobile, entertainment, electronics, hospitality, banking, jewellery, small and medium business will face slowdown for a longer duration due to COVID-19 pandemic.

Sharing a report of the Dun & Bradstreet, a prominent research and data analysis agency, the IIA has listed out nine priority sectors out of 16 for revival when nationwide lockdown is lifted.

Highlights

Worst affected sectors--Tourism, Automobile, Entertainment, Electronics, Hospitality, Banking, Jewellery, Real Estate small and medium business sector.

Sectors which will revive soon--Drug and Pharmaceutical, Retail, Wholesale trade, Textile, Livestock, Logistics, Metal.

“Of 16 prominent sectors that propel economy, nine such as tourism, automobile, entertainment, electronics, hospitality, banking, jewellery, small and medium business will face slowdown for a longer duration due to COVID-19 pandemic,” said Pankaj Kumar, national president, IIA, a lobby body of the MSME sector.

“Our analysis is also the same. In Uttar Pradesh, these nine sectors will face more crises as compared to industrial states like Gujarat, Maharashtra and southern states like Andhra Pradesh, Tamil Nadu and Telangana,” added Kumar, demanding a special package for them.

Drug and Pharmaceutical, Retail, Wholesale trade, Textile and livestock will recover from the present crisis soon.

Similarly, logistic and metal sector will also be able to come out of the present crisis soon, says the report.

“The banking sector will face problem as non-performing assets (NPA) will mount due to unpaid loans,” said Kumar.

The tourism sector is considered as the most employment generating and labour intensive sector. This sector will be worst affected by the COVID-19 pandemic and will take more than one financial year to recover.

Footfall of foreign tourists will be almost negligible for around a year due to financial constraints and social distancing norms. Air travel will also become expensive, says the report.

“In such a scenario, we will have to depend heavily on domestic tourism and some assistance from the government for revival of tourism sector will be needed,” said Kumar.

Due to slump in economy, demand for electronic goods will also go down, says the report.

Box