Industry body Federation of Indian Export Organisations (FIEO) has urged the Government to immediately provide Rs 30,000 crore worth of interest-free working capital term loan to exporting companies for easing their working capital liquidity issues and prevent large- scale unemployment that could follow post-lockdown, especially in the labour intensive sectors.

The demand for addressing the liquidity issues of exporters has been made in a letter sent to Prime Minister Narendra Modi by FIEO president Sharad Kumar Saraf. In the letter, Mr Saraf has said that the country’s exports will take an unprecedented hit in these challenging times with the sector facing over 50 per cent cancellation of orders.

“The worst hit is lifestyle products such as leather, carpets, handicrafts and apparels which are having over 75 per cent cancellations. This will also put pressure on current account deficit as overseas remittance will decline and so will be FDI/FIIs inflow in the country,” he said, urging the Prime Minister to do something urgently.