COIMBATORE: The Indian Chamber of Commerce and Industry, Coimbatore, has expressed concern over the move by banks to recover the fresh loans given to trade and industry recently to meet their working capital requirements.
At the annual general meeting of the Chamber here, its president Mahendra Ramdass said that the government had announced two stimulus packages to arrest the downslide in the economy.
Apart from reducing taxes, it asked the banks to advance fresh loans to the trade and industry to meet the working capital needs. The banks, however, advanced the loans for short-term and had started the recovery exercise.
This would lead to financial crisis for the units again. The industry needed the support from the government and long-term credit facilities.
Mr. Ramdass also said that the trade unions were focusing largely on the organised sector employees.
According to an estimate, for every employee in a factory affiliated to a trade union, there were 30 workers in the ancillaries and support services. The unions needed to change in the light of global developments, he said.
The government should implement the court verdicts and orders passed by regulatory bodies without interpreting in different ways, he said.
While the economy was showing signs of recovery in the country, especially in the first quarter of this financial year, exports continued to decline. This was an indication that the export markets for the country – the U.S. and the European Union - were yet to recover from the recession. Hence, the economic challenges remained for the Indian industry, he said.