Govts decision to allow opening of manufacturing units in rural areas will help export sector: FIEO

Exporters body FIEO on Wednesday said the government's decision to resume factory operations in rural areas would help in opening of about 80-85 per cent of the manufacturing gradually and augmenting supply which will bring exports back on track.

Federation of Indian Export Organisations (FIEO) President Sharad Kumar Saraf said the announcement would also give a positive signal to the world that India is confident to contain Covid-19 through its measures.

"We welcome the revised guidelines, issued by the Ministry of Home Affairs today. Opening of units in rural areas, special economic zones and units in industrial townships and estates will help in opening of about 80-85 per cent of the manufacturing gradually," he said in a statement.

He added that it will be a psychological boost to migrant workers also who were getting desperate with extended lockdown.

"'The industry is also relieved as the wage and other charges will cause lesser burden on them with the commencement of production," Saraf said.

He said that since in exports, documents are extremely important to show proof of delivery and negotiation, exporting companies may be allowed passes for two persons, once a week, to collect documents from the office for submission to banks, shipping lines, courier companies.

"The export cycle is completed with the realisation of exports payments, for which opening of the office is required as otherwise payments will be at great risk particularly looking into liquidity challenges, increasing recession across economies and impending bankruptcies," he added.