Coronavirus pandemic hurt nearly half of industry, says survey
- Three-fourth of the businesses surveyed indicated big reduction in new orders
- More than two-fifth of respondents claimed a cash flow reduction of at least 20%
NEW DELHI: Nearly half of the 317 companies surveyed by an industry body have claimed that business has been hit by the Coronavirus pandemic by a moderate-to very high measure, with adverse impact on new orders, inventory and cash flow.
Industry chamber Federation of Indian Chambers of Commerce and Industry (FICCI) said a survey done during 15-19 March showed that 47% of the surveyed companies indicated the pandemic had moderate-to very high impact on business even at early stages.
It also showed that almost three-fourth of the businesses covered by the survey indicated big reductions in new orders. Of these, almost half indicated a 20% and more decrease in orders. A significant 35% of companies claimed an increase in inventory levels, while reduction in cash flow was reported by 80% of the companies surveyed. More than two-fifth of respondents claimed a cash flow reduction of at least 20%, the survey said.
The survey showed that besides direct impact on demand and supply of goods and services, reduced cash flow hit all payments, including to those for employees, interest, loan repayments and taxes. Also, more than three-fifth of the respondents indicated their supply chains were affected.
Citing the survey, the lobby group said in a statement there was a need for “immediate steps to not only contain the spread of the virus but also to address the key pain areas of the industry which can help in minimising the impact of the outbreak on the Indian economy and businesses.”
The industry body said a combination of monetary, fiscal and financial market measures was needed to help businesses and people cope with the crisis.
On Friday, union finance minister Nirmala Sitharaman held a meeting of a task force formed to assess the impact of the pandemic and to find ways to tackle it. Businesses and government have taken a host of steps so far to minimise the spread of the virus, including suspension of non-essential travel, social distancing and implementing ‘work from home’ policies.
As per union health ministry, 206 people have tested positive for coronavirus in India, including visiting foreign nationals. Four people have died in India due to the disease so far.
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First Published:20 Mar 2020, 05:52 PM IST
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