New Delhi: India Inc must resort to layoffs in order to survive in the present circumstances and the textile sector has already given pink slips to 5,00,000 workers, business body PHDCCI today said.
“If they (industry) have to survive they will have to lay off in the current situation,” the new President of PHDCCI Satish Bagrodia told reporters here.
He said the textiles industry has already cut over 5,00,000 jobs and as many more would lose their livelihood in the next four months if the economic environment does not improve.
However, on Tuesday, the government had said the impact of economic crisis on layoffs in India has been limited and even moderate economic growth is enough to generate jobs.
Unlike the developed countries job losses have been limited in India as a large proportion of the population is employed in the agriculture sector, which has not been hit by the crisis, it said, adding the services sector that makes up for a large share of the GDP has also been less affected.
PHDCCI said the country’s economy, which is being impacted by the world financial meltdown, is unlikely to recover before 2010-11.
“In the current scenario of tight and expensive credit, recovery before 2010-11 does not seem likely,” Bagrodia said.
The immediate challenge is to rekindle business sentiment by creating an environment of growth, he said.
To spur the economic growth the second stimulus package should contain Rs1,50,000 to Rs2,00,000 crore for the core sector, besides cut in key policy rates, it said.