Manufacturing halted across sectors
Key segments of Indian manufacturing – including automakers, smartphone makers, consumer electronic firms & appliance majors – have started shutting down in response to the lockdown orders issued by central and state governments and the suspension of public transport services in many places in the country. This is leading to an incalculable damage to production of key products.
“In an extreme case such as a complete shutdown of all factories by all industries for one month, we estimate that real manufacturing GVA would fall by a sharp 5% in FY21,” explicates Sachchidanand Shukla, chief economist, Mahindra Group. “Manufacturing growth only declined in two quarters in the last 20 years,” he adds.