by Nitin J Maniyal
There has been a sizable reduction in sales and services in the last quarter of the financial year 2013-14 which has especially affected the small business traders and manufacturers. This reduction in revenues is causing distress among the employers and further resulting to layoff the workers, shrink in their salaries and cost cutting techniques are also adopted. The industries which were employing labourers on overtime, have now eventually called an off on Saturday and Sunday. The export orders have also shrunk which is one of the most important factor for affecting the markets severely as Belgaum ranks 2nd in state for exports after Bangalore.
Reasons for the shrink are as follows:
1. International demand for the products has reduced, thereby affecting the sales and revenues.
2. Since elections are round the corner in April-May, huge amount of funds have been withdrawn from the market. It is expected the business conditions may remain the same untill the new government comes to power.
3. Examinations of students is also a reason for shrinkage of revenues. Parents and the guardians do not want to take any kind of risk with their wards regarding their career, which leads to stoppage of the extra curricular activities and the entertainment.
Business sectors affected:
Entertainment sector is operating at almost 50% of its normal capacity.
Lifestyle sector is operating at almost 60% of its normal capacity, but since the wedding season is shortly upcoming, it is expected to reach its normal levels.
Automobile sector and the Industrial sector are also operating nearly 60% of its level.
Hospitality sector and Real Estate sector is operating in the range of 70% to 80% of its normal capacity.
Print and Media sector are operating over their capacities; they are currently operating in the range of 120% to 150%, as they are preparing for the upcoming election campaigns.
Pharmaceutical and Agricultural sectors are unaffected.
Outcome of the short recession:
The underperforming workers are expelled from the jobs.
Salaries are being deducted in the range of 15% to 30% of their salary prior to this recession.
Employees who used to work overtime in order to take an extra incentive home, has been stopped.
Some industries are also giving holiday on Saturday and Sunday, which will reduce the cost of blue collar laborers working on daily wages.
Any other unproductive work have also been stopped
Business Houses are majorly concentrating on hiking up their revenues.
Nitin J Maniyal is a Lecturer at Jain Degree College Belgaum