India’s ambition to become an exporting economy has suffered a major blow. With the lockdown as well as restrictions in other countries, Indian exporters are facing an unprecedented crisis.
Exporters from different sectors say that about 30-50 percent of their orders have been cancelled due to the pandemic. The situation has worsened in April with the sector expecting only 5-10 percent exports this month.
Indian exporters are also facing challenges like shortage of labour, insufficient liquidity and lack of logistics. They fear if this situation continues, they will lose their clients to companies in China, Vietnam and Bangladesh which are operating at full capacities.
In an interview to CNBC-TV18, Ravi Sehgal, chairman of Engineering Export Promotion Council of India (EEPC) and Aqeel Ahmed, chairman of Council for Leather Exports, discussed ways to alleviate the pain of exporters and bring manufacturing back on track.