North-Indian sports industry feels the heat of global recessionNovember 22nd, 2008 - 6:26 pm ICT by ANI
By Karan Kapoor
Jalandhar (Punjab), Nov 22 (ANI): Sports industry of Jalandhar in Punjab, which has a turnover of around 20 billion rupees, is reeling under the intense heat of global recession.
The industry, which is into manufacturing sports accessories of games like cricket, hockey, football and volleyball, started in late 40′’s of the 20 th century and has nearly 1000 units with almost 50,000 workers involved directly or indirectly.
Forty per cent of the produce is exported while the rest is sold in the domestic markets.
Sports industry has been largely impacted by the recession in the international market. Australian dollar has exactly depreciated 20 per cent while pound is down by 15 per cent and euro with 10 per cent. So, all these things have largely impacted the sports industry. People are going in losses sometimes in fulfilling the in-hand orders, said R. K. Mahajan, former vice-president of sports goods export promotion council.
Market of the industry has been affected 30 per cent and unit owners fear it to rise to 40 per cent if corrective measures are not taken.
The impact of recession is nearly 30 per cent till today, this impact has started only two months back and I anticipate this to go another 10 per cent. The exports to UK, Australia are badly affected and the business from Caribbean countries USA, Canada too has been affected. It is affected about 10 per cent now, said Surjeet Singh Jolly, owner of a unit.
Traders are requesting the government to take measures to meet the crunch.
We request the government to give more and more benefits to exporters. And there should be equal laws for domestic traders in Uttar Pradesh and Jalandhar. Our customers will be attracted towards UP, if there are more benefits, said Sanjay Kohli, owner of another unit.
Indian authorities are struggling to shore up growth against the impact of the global financial crisis and have taken a host of steps including sharp rate cuts to fend off damage to the broader economy.
New Delhi says the world was in a deep crisis but despite an adverse international environment India had the capacity to sustain a growth rate of about eight per cent. (ANI)
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