Win over the US, Japan and EU companies
Maintaining price-cost margins and profitability top the list of 10 challenges faced post-COVID-19 by Indian businesses, according to a survey conducted by PHD Chamber of Commerce and Industry.
“At this juncture, we should (also) target the companies from the US, Japan, EU, which are desirous for shifting their base. This will promote Make in India and help the country to become the manufacturing hub with strong connectivity with global supply chains in the coming times,” said Dr D K Aggarwal at the survey release.
The top challenge was based on 61% respondents to the 2,770-business survey conducted in April-May 2020, said PHD Chamber on 29 May 2020.
The other challenges were:
60% Payment of wages/salaries to employees
58% said availability of working capital
53% stated repayment of loans/payment of EMIs
52% said high costs of capital
51% respondents said availability of finances/loans
51% opined costs of social distancing
51% said weakening of demand
50% stated compliances of labour laws
49% said retaining of the full workforce.
The survey also discovered top 10 plans of the businesses:
67% respondents said increasing the sales volume
65% opined enhancing competitiveness of business
64% said cost cutting of business operations
60% opined enhancing business operations in the domestic market
58% stated focus on innovation, research & development
53% respondents said enhancing the price-cost margin
50% said reducing the workforce in business operations
44% stated increasing the scale of business operations
43% opined diversification of business operations
36% said enhancing business operations in the international market.
Sanjay Aggarwal, PHD Chamber Senior Vice President, called on the Government to support the small businesses that are facing the issues of paying salaries to employees and subdued demand environment amid pandemic COVID-19.
He suggested an increase in public spending/investments, focus on building health and educational infrastructure along with buying technologies and not products from foreign countries.
Ajay Shankar, Former Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), called on the Government to focus on bringing back the demand in the economy to pre-COVID-19 level.
He called for efforts to reduce costs of doing business, re-focus on growth and developmental priorities to take India at the global level with strengthened supply chains.
Dr Rajesh Chadha, Program Director, Natural Resources, Brookings India appreciated the reform measures announced by the Government on the commercialization of coal mining.
But he called for a strengthening of the manufacturing sector is need of the hour to mitigate the impact of pandemic COVID-19 on trade and industry.
The widened definition of MSMEs along with other path-breaking reforms announced by the Government will ensure that the MSMEs are able to resume, restart and revive from the current distressed times, noted PHD Chamber President Dr D K Aggarwal.
Going ahead, the costs of doing business, including the cost of capital, cost of compliances, cost of logistics, cost of land and availability of land, cost of power, energy and cost of labour, should come down in the country to attract foreign investors and provide a level playing field to industry, suggested Dr D K Aggarwal. fiinews.com
