Page 65 - ELT_1_1st April 2020_Vol 372_Part

2020 ] TIT-BITS A39

from agreements for fear of non-performance, leading to a fall in the overall vol-
ume of business activity in February to the lowest in the past six years.
Although a slowdown in Raw Material supply could hurt certain China-
dependent Industries, it also presents Indian firms with the opportunity of filling
the void. The Ministry of Commerce and Industry has drawn up a list of 500
items that Indian firms could provide replacements for. Garment exporters, for
example, have benefitted from the outbreak. Large garment exporters are receiv-
ing orders from new customers in western markets, who were traditionally
sourcing from China.
Sivaramakrishnan Ganapathi, Managing Director of India’s largest ap-
parel exporter, Gokaldas Exports, said, “We have started seeing new orders in
small quantities in relation to the size of business. End-users in western countries
are worried and if the disruption continues beyond April, future demand from
China may slow down.”
T. Rajkumar, Chairman, Confederation of Indian Textile Industry, esti-
mated that exports of finished textile goods, clothing and fabrics could grow
20-30 per cent.
Buyers from Europe and the US generally travel to China in January to
negotiate with exporters for the next season. However, most buyers are looking
for alternatives now. Ready-made garments exports grew to $1.45 billion (around
110,347.66 crore) in January, from $ 1.41 billion in December 2019.
Auto exports have remained stable. This is because one of India’s largest
export destinations for automotive products, Africa, remains relatively unaffect-
ed. R.S. Sharma, Executive Director at Bajaj Auto, said : “Most certainly the level
of economic activity will decline.”
The only relief as of now, Sharma said, is that Africa, the company’s big-
gest market hasn’t been affected by the outbreak. One in every two motorcycles
exported by Bajaj goes to Africa. In the past three months, Bajaj has sold more
motorcycles in the exports market than domestically, with exports growing an
average of 15 per cent.
Meanwhile, the pharmaceuticals sector has been hit partially. The Centre
placed curbs on export of 13 key active Pharmaceutical Ingredients (APIs) and
formulations. An exporter and senior office-bearer of an industry lobby group
said that exports in March would see a 5-6 per cent dip because of the curbs. “We
are trying to reason with the government on relaxing or lifting the curbs on ex-
ports. Already buyers in Europe and the US are worried about further curbs
being imposed by India,” he said. He said drugs that are for export markets are
different from those made for the domestic market. And the curbs would not
help with domestic availability.
“Supplies have started coming from China. About 50 per cent of regular
supplies are coming in now. Moreover, there is enough stock for key medicines
like Paracetamol in India,” said an exporter.
[Source : Dilasha Seth in Business Standard, New Delhi, dated 13-3-2020]

SC stays HC order on deferring recovery process
The Supreme Court on 20-3-2020 stayed a Kerala High Court (HC) order

EXCISE LAW TIMES  1st April 2020  113