Bandh loss figure may now touch Rs. 26,000 crore: Assocham
With the nationwide strike turning violent in some parts of the country and resulting in a sense of insecurity among the industry and the workforce, the industry body Assocham has expressed fears that the loss to the GDP would be more than its initial estimates of Rs. 20,000 crore rupees as almost 50 per cent of the economic activity has been hampered by the strike.
In most of the industrial states and enclaves, the attendance was poor, leading to curtailing of productions shifts. With city transport being affected adversely, the footfalls in the retail trading markets also considerably declined, even though some of the markets remained opened.
“In the wake of more than expected disruption, we estimate the loss to the GDP in today and tomorrow’s bandh to be in the region of Rs 25,000- Rs 26,000 crore – near 50 per cent of the economic activity,” said head of the ASSOCHAM Economic Analysts Team in a statement.
Expressing concern over incidents of violence and torching of public and private property, the chamber appealed to the union leaders to prevail upon their rank and file and ensure that the ugly incidents do not take place.
“Such incidents completely shake confidence of the industry and the market for which security and peace is of paramount importance. Besides, the retail customers choose to stay indoors leading to considerable fall in the trading business
– the lifeline of the country’s economy,” said chamber's President Rajkumar Dhoot.
The Assocham's analysis apprehends the loss to the country’s GDP would work out to about Rs. 13,000 or more today itself. The economy at this point of time is battling local and global slowdown cannot afford disruption. The strike would dent the market confidence as well, said the chamber president.
Assocham's reports from different parts of the country suggested that the banking sector was the worst hit followed by local transport. The small and big retail trade had less of footfalls.
The situation in the vegetable mandis would be worse tomorrow and it is feared the prices of fresh eatable items such as vegetables, milk, bread, eggs and meat may increase hitting the common-man who is already reeling under inflation.