Strike hits export sector, results in losses worth Rs.25 k crore

Sai Nikesh | The Dollar Business

A nation-wide strike on Wednesday called by around ten central trade unions caused loss of up to Rs.25,000 to the country, according to an estimate. Apart from affecting bank transactions, transportation of various overseas consignments came to a standstill due to the strike, hitting traders. “The strike called by trade unions created further problems for crisis-ridden export sector which has been witnessing decline for the past eight months,”  Anupam Shah, chairman, Engineering Export Promotion Council (EEPC), told The Dollar Business. Transport and cargo services were disrupted across the country. “Besides, the documentation process for lifting of cargo, both imports and exports, got affected as the banks were not able to function,” Shah added. S C Ralhan, President of the Federation of Indian Exporters Organisations (FIEO) said, “The strike had minimal impact on industry as most of the factories ran. However, exporters who had not taken note of the strike faced heat of the situation.” Industry body ASSOCHAM estimated the loss due to strike at Rs.25,000 crore. “Financial impact of the disruption of essential services might lead to an estimated loss of over Rs.25,000 crore to the Indian economy thereby taking into account the numerous direct and indirect losses,” said D S Rawat, secretary general, Associated Chambers of Commerce and Industry of India (ASSOCHAM). Trade unions demands included urgent measures to rein in price rise, stoppage of disinvestment in PSUs, ending contract system, removal of ceiling on bonus and provident fund, compulsory registration of trade unions within 45 days, strict implementation of standard labour law, stopping of FDI in railway and defence.  

  September 03, 2015 | 3:45pm IST.