Production in small units decreased amid tariff tension, MSME sector affected amid global business challenges.
Kanpur, Read. Amidst the tariff tension in the global market, small units are also getting affected. These are those units which cooperate in the products being manufactured in units related to export business. If entrepreneurs are to be believed, now they too are facing the threat of reduction in production due to the impact of export business. About 30 percent of the MSME sector business in the city has been directly affected.
Foreign buyers are cautious due to the possibility of America imposing first 50 percent tariff and then higher tariff. They are holding the order now. He tells the exporters that orders will be able to proceed smoothly only after the tension on tariffs is cleared. Earlier, due to this global market turmoil, big export manufacturing units and now small supporting units have also come under the influence of reduced production.
Units in the packaging and printing sector have been affected the most. Due to reduced production in small units, the jobs of the employees working here are also in danger. On the whole issue, FETA General Secretary Umang Aggarwal said that the low production in small units in the industrial sector will not increase unless they get orders from big units. In such a situation, these small units are now working on a plan to get orders from the domestic market.
Emphasis on new markets
40 percent of small industrial units in the city are dependent on big export units. In such a situation, their orders had fallen after the imposition of tariffs by America. Despite this, these small units were maintaining their production. Dr. Zafar Nafees, Director of Sana International Exim, said that recently there is talk of America imposing tariffs on many countries of the world. In such a situation, the work of exporters who get orders from many countries has also slowed down. Its biggest impact has been on units involved in small export business.
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