Industry Survey Paints Bad Picture of Economy and Jobs

Economies across the globe have come to a standstill due to the Corona Crisis. Even the Governments are grappling for funds. The demand is at an all-time low and there are predictions all over that there is a Recession coming over way very soon. A survey predicts massive job losses on cards due to this Crisis.

According to the business impact survey conducted jointly by the Federation of Indian Chambers of Commerce and Industry (FICCI) and consultancy firm Dhruva Advisors, businesses opined that they will be forced to lay off staff unless the government announces a substantive stimulus package immediately.

At least three-fourths of the 380 surveyed firms said that they may look at some reduction in manpower in their respective companies. There are demands that there should a stimulus package of at least 10 Lakh Crore to tide over the crisis and bring the economy back on track.

A package of 9.5 Lakh Crore amounts to 5% of India’s GDP. The government has thus far neither announced a package nor indicated when it will do so. 70% of the firms expect sales degrowth in the current fiscal year while more than 60% of companies defer their expansion plans and fund-raising plans at least till the next 12 months.