Parul
Industry body PHDCCI on Friday said it apprehends “severe hit” to trade and industry and loss of employment in the northern states from a lingering farmers’ agitation which would result in economic losses of over Rs 500 crore daily. “A lingering agitation will cause Rs 500 crores economic loss daily and will have an impact on Q4 Gross State Domestic Product (GSDP) of northern states majorly Punjab, Haryana and Delhi,” said Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry.
The industry body looks forward to an early resolution of the issues from both the government and the farmers, with a common consensus for the welfare of all in the country, he added.
Agrawal stated that the farmers’ agitation is severely impacting the businesses of the Ministry of Micro, Small and Medium Enterprises (MSMEs) in Punjab, Haryana, Delhi and parts of Uttar Pradesh and Rajasthan as raw materials of such units are procured largely from other states to execute production processes and to meet up demand of the consumers.
The major hit will be on the MSMEs in Punjab, Haryana and Delhi.
“The combined GSDP of Punjab, Haryana and Delhi is estimated at Rs 27 lakh crore in 2022-23 at current prices. There are around 34 lakh MSMEs in Punjab, Haryana and Delhi which employ about 70 lakh workers in their respective factories,” said Agrawal.
The economic activities such as the food processing, cotton textiles, garments, automobile, farm machinery, information technology, trading, tourism, hospitality and transport will be severely impacted by the continuous farm agitation with the disrupted supplies of many raw materials to the industry, he observed.
“It was a growth year despite all the headwinds, the surprise here was that while export slowed down a bit we definitely saw a significant increase into domestic market including the business for tech services. I think it was the fastest growth we have seen in domestic market,” Nasscom President Debjani Ghosh said at a virtual press briefing. The growth in the domestic revenue was primarily driven by government and enterprise spending. She said that some of the tailwinds that stood out for the industry last year was the Gulf Cooperation Council (GCC), adding that India continues to be the preferred hub for GCC countries and this is getting even stronger. “As we see companies, as we see the GCC scope of work moving from just back and work to more of R&D and more of innovation, this is where the India attraction goes up significantly, primarily driven by talent and political stability and ease of doing business,” Ghosh added.
