Capatlise on corona crisis as opportunity: FIAV to industries

Business Bureau :

“As we believe more on western reports, the UNCTAD in its recent report-- Covid 19, Shock To Developing Countries-- has stated that major economies least exposed to recession would be India and China. This crisis would prove to be an opportunity for our country if handled properly,” said Kiran Paturkar, President of Federation of Industries Association Vidarbha (FIAV) while talking to The Hitavada. “We should enter into a long-term contract with Iran for supply of petroleum products as the settlement of trade with Iran is not USD dependant, thereby saving the major bulk of precious foreign exchange.

To sustain the global competition by lesser manufacturing cost in China, number of Japanese companies had set up their production units in China. Actually these two are the rival nations,” Paturkar said. “Recently, Japan has announced that companies shifting their production houses from China would be incentivised and supposed to have set aside a whopping amount of USD 2.2 billion for this purpose. Our political leadership should come forward and invite Japanese companies here in India by convincing them about stable industrial policy, stable industrial and labour laws and most importantly non application of taxes on retrospective basis,” he said.

“Amidst, the coronavrus turmoil, USA threatened us about the issue of supply of Hydrochloroquine. Once the supply of said drug was made, next day American Senate cleared proposal of supply of Harpoon and Mark-54 torpedoes required in naval warfare to India,” said CA Milind Kanade, President BJP Udyojak Aaghadi, Nagpur and Secretary of FIAV. He said, State Govt which has more resources does not have sufficient funds to distribute salary for the previous month of March and is summoning MSMEs having meagre resources to pay the full salary to its employees during lockdown period.

“MSMEs are striving hard to make their both ends meet and on humanitarian grounds helping their human resources. Throwing light on another issue, State Govt is implementing Package Scheme of Incentives with the same preamble of dispersal of industries from more developed area of Maharashtra to less developed area of since last five decades. “Even by pouring hundreds of crores for the benefit of medium scale industries, the development is still an illusion. The structuring of incentives is not delivering, infact the State should facilitate lower electrical tariff, better market opportunity for MSMEs,” Kanade said. “Economists are of the opinion that whenever a coronavirus like situation arrives, we work through panic, package and neglect,” he added. “Our policy makers may offer us a stimulus package. There might be high rate of mortality of MSMEs during this period if proper financial boosters are not infused,” he said. He said, corona may prove to be an opportunity for industries. They should capitalise this opportunity for leaping ahead.