Welcoming the Centre’s move to allow some industries to reopen from April 20, India Inc. on Wednesday said the decision would not only help them prepare better for restarting economic activities, but also address livelihood concerns. However, some industries, such as the auto components sector, reiterated the demand for an urgent fiscal stimulus from the government.
Confederation of Indian Industry’s (CII) director general Chandrajit Banerjee said, “The phased manner of the exit from lockdown is welcome and provides a roadmap for economic restart after May 3. With this advance guidance, industry would be able to better prepare for the restart of economic activity. ”The industry body expressed hope that in the next phase, the government would allow opening up of important labour-intensive sectors. Noting that all digital and communication highways are built using electronic and ICT products, Nitin Kunkolienker, president at Manufacturers’ Association for Information Technology (MAIT), said that the step was crucial to cater to the pent-up demand for ICT products, estimated to be about $2.5 billion per month, which, otherwise would have to be fulfilled via imports. The software industry — about 90% of whose workforce is working from home — is also looking to get back to office premises, albeit in a phased manner. While the MHA directive allows 50% of IT and ITes staff to get back to work, industry body Nascom said it had advised members to start with 15-20% workforce being back at office premises in phase 1.
E-commerce
E-commerce players also welcomed the move. A Snapdeal spokesperson said that at this critical juncture, the e-commerce industry could ensure that citizens stay indoors and all their needs are met through home deliveries with immense precautions.
Likewise, Srinivas Mothey, senior V-P, Paytm Mall, told The Hindu that they were having discussions with brands and merchants on readiness in terms of inventory, packaging material and sales estimations. “We believe categories such as health products, consumer electronics, home appliances, kitchen essentials, mobile phones and accessories and clothing would show an increase in demand in a phase wise manner.”Mr. Mothey added that there were few pending orders with sellers, while for some orders the company had refunded the money to users.
The Internet and Mobile Association of India, in a statement, pointed out that one e-commerce delivery person can help avoid 350 persons from visiting a retail store, and considering that the e-commerce platforms can cater to 75-100 million customers over 19,000 pin code areas, these platforms can prove to be critical tools of maintaining social distancing even while facilitating economic revival.
Meanwhile, the Automotive Component Manufacturers Association said it was in touch with original equipment manufacturers and resumption of their operations will be aligned to their commencing operations as also on the directions from the local authorities.
