Coronovirus effect: China comes to a halt, city businessmen balk

LUDHIANA: City businessmen feel the heat of the spread of coronavirus in China. Due to shutdown of factories and suspension of production in several cities of China, the shipments of various products from China to India have been delayed. This has led to the shortage of various goods in the markets, hiking the rates of several items sharply.
Some businessmen are also advocating that Union and state governments should use the opportunity to boost manufacturing sector by helping investors to manufacture goods that have been imported from China till now at home.
Upkar Singh Ahuja, president of Chamber of Industrial and Commercial Undertakings (CICU) said, “Industry in Ludhiana is badly affected due to spread of coronavirus. Paper prices have gone up by Rs 12 per kg and garment manufacturers are facing cloth shortage and rate hike. Accessories like buttons, zips, patches are in shortage as well. The situation has forced Ludhiana industrialists to explore costly alternative sources from countries like South Korea and Taiwan. Situation is getting worse day by day and the end users too are being affected. Chinese plants were closed from January 20 because of Chinese New Year and remained closed till February 15. The Chinese government has allowed the businessmen to open their factories from February 16, but with undertaking that they will closely monitor health of workers. The situation has not turned to normal — even if the entrepreneurs are brave enough to keep their businesses open, very few workers are turning up for work. Obviously, shipments from China are being delayed.”
According to Angad Singh, an importer, he used to import 10-15 containers of PVC panel for construction industry every month. “At present, shipping lines are not able to lift the goods from Chinese factories as there are no drivers to drive the trucks. Moreover, there is no clarity whether crew members are allowed to travel in ships. Custom authorities are assuring us that they are providing clearances to goods on fast track basis to avoid shortages in the markets. But the present situation does not look good — due to shortage of stuff like PVC, the prices are likely to climb higher,” added Angad.
According to Pankaj Sharma, another industrialist, “Corona virus in China is hitting industries in India and Punjab too. India imports goods worth Rs 61.5 billion from China and ranks as number one importer from China. Top 10 products being imported from China include electronics, smartphones, machines, engines, pumps, organic chemicals, iron & steel, plastic, iron & steel products, ships, boats, medical technical equipment’s, textiles etc. I think considering the fact that shortage and hike in rates of the products like fabric, PVC, paper hitting us badly, it’s time for Indian industries to encash the opportunity by manufacturing such products at home. Both Union and state governments should focus on products that India can manufacture. But to ensure this, governments should provide incentives to us to import machines and technologies at zero import duty cost. Micro small and medium enterprises ministry has 15 schemes, but they are not so effective and if the government really wants us to make use of these it will have to simplify the procedures to get benefit of these schemes. State government should also step forward and should set up parks focused on different sectors of Industry and ensure that getting various permissions for starting an industry are made easier.”