The Engineering Export Promotion Council of India (EEPC India) has expressed concern that the outbreak of the novel coronavirus, Omicron, could once again disrupt the global supply chain, which could result in a slowdown in business activity.
The Indian Engineering Export Promotion Council (EEPC India) has expressed concern that global supply chains may once again be disrupted due to the outbreak of Omicron, a new form of the corona virus.
The Engineering Export Promotion Council of India (EEPC India) has expressed concern that the outbreak of the novel coronavirus, Omicron, could once again disrupt the global supply chain, which could result in a slowdown in business activity. Engineering goods exports grew by 38 per cent year-on-year during December 2021. And it has increased to $ 38.4 billion.
EEPC India President Mahesh Desai said in a statement on Friday that the steady growth shows that the sector is well on its way to increase its share in global trade.
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He said that orders are good for the time being, but if Omicron disrupts the global supply chain, then we may face a slowdown for some time. They have seen some signs of instability and uncertainty in recent weeks due to the outbreak of the pandemic across the globe, but the government can ramp up business through appropriate policy measures.
Desai also appealed to the government for immediate action to reduce the rising raw material prices and logistic cost.
Let us tell you that the domestic rating agency India Ratings and Research has said that due to Omicron, there may be an impact of 0.4 percent on the GDP for the January-March quarter. While the GDP for the whole year may decrease by 0.1 percent compared to the previous estimates, according to the rating agency, any restrictions imposed across the country such as reduction in the number of people coming to the markets, curfew at night or weekend economy But will make an impact. The agency said that due to the increase in the number of new cases in the last 15 days, the growth rate in the fourth quarter may come down to 5.7 percent, earlier the growth was estimated at 6.1 percent. The GDP growth for the full year is estimated to be 9.3 percent as against 9.4 percent earlier.
The report has expressed relief that even though the spread of the new variant is being seen much faster, but early indications are showing that the effect of Omicron is not as dangerous as the second wave and its symptoms are also at a moderate level. In such a situation, there is a possibility that if governments impose restrictions, then those restrictions will not be as strict as last year’s restrictions, so the economy will remain in motion.
(with PTI input)