Vast majority of Japanese firms hit by India's nationwide lockdown
NEW DELHI, NNA – The economic fallout from a nationwide lockdown in India has hit Japanese companies there as they suffered supply chain disruptions, plunging sales and cash flow problems.
Ninety percent of 272 membership firms of the Japan Chamber of Commerce and Industry in India (JCCI) which responded to its survey said they were hampered by disruptions to supply chains, according to the poll results released on Friday.
They also called on the government to let them postpone tax payment since they were already having difficulty in cash flow management and collection of accounts receivables.
Like many countries in the world, Asia’s third largest economy is also facing the brunt of supply disruptions as activities have been halted in shutdowns to contain the global coronavirus pandemic from spreading.
The poll, which was conducted last week, revealed that 73 percent of the respondents found the Indian government's lockdown measures had hindered their business activities after workers operated from home following the closure of offices and factories on March 25.
Among 220 firms dragged down by the lockdown, 96 percent suffered declines in production and sales, according to the survey.
More than 70 percent of the respondents had trouble in cash flow, while over 60 percent had problems paying staff salaries.
About half of the 272 companies surveyed had already sent all or part of their Japanese staff back to Japan.
The respondents also said they were fearful of food shortages as stockpiles would dwindle sooner or later.
The Japanese chamber looks after the needs of 448 membership companies in India where at least 4,067 confirmed cases of Covid-19 infection and 109 deaths have been reported as of Monday, according to the Ministry of Health and Family Welfare.