Indian Inc. to cut production, jobs: Industry lobbyDecember 9th, 2008 - 9:12 pm ICT by IANS
New Delhi, Dec 9 (IANS) Indian industry is planning to slash production by 10 to 50 percent till next March, with certain segments cutting jobs by up to 30 percent, says a survey by a leading industry lobby.”Manufacturers in major sectors have reportedly planned cuts in their production for the period November 2008 to March 2009,” a report released Tuesday by the Federation of Indian Chambers of Commerce and Industry (Ficci) said.
“This implies that the growth for the manufacturing sector could further slow down in the coming months if the current economic uncertainties continue,” the chamber said.
According to Ficci, the sectors likely to see production cuts include textiles, metal and metal products, machinery and equipment, leather as well as chemicals.
Besides, sectors such as textiles, metals and metal products, leather and jewellery could see job cuts by 10-30 percent, Ficci survey report said.
“Despite the government’s stimulus package, Indian manufacturing sector is not likely to see any revival in its growth soon,” a Ficci release said.
The package announced by the government includes enhanced credit guarantee, cheaper loans for export oriented labour intensive sectors as well as Rs.200 billion as additional plan expenditure.