New Delhi, Dec. 9: A survey by industry body Ficci has warned that textiles, metals, machinery and leather firms could cut production and shed jobs, notwithstanding the recent stimulus package by the government.
The $11-billion BPO industry is also likely to see job losses of up to 250,000 people, said another study by the Business Process Industry Association of India.
Samir Chopra, president of the BPO body, said urgent government measures were needed to boost the industry, especially the small and medium enterprises. These include both fiscal and administrative measures, such as extending the tax relief for the IT sector for another 5-10 years and export promotion steps, including a market development fund, he said.
The Federation of Indian Chambers of Commerce and Industry (Ficci) said in its survey that manufacturing was planning production cuts in the range of 10-50 per cent and employee reductions by 30 per cent between October and March.
Finance ministry officials, however, dismissed the report and said that it could be interpreted as an attempt by the industry to gain more concessions.
According to Ficci, the sectors that are likely to see production and job cuts include textiles, metal and metal products, machinery and equipment, leather, chemicals and jewellery.
Despite the governments stimulus package, the Indian manufacturing sector is not likely to see any revival in its growth soon, a Ficci release said.