Factories need 9 months to be back on track

New Delhi: It may take six to nine months for factories to come back on track if India manages to contain the spread of coronavirus in the next quarter beginning April, India Inc said on Thursday.

The industry also said the coronavirus pandemic has made the global economic recovery extremely difficult in the near-to-medium term, and India is also experiencing disruptions in many ways that have the potential to derail the growth story.

The World Health Organization (WHO) has already declared the coronavirus outbreak a pandemic. Globally, the virus has already claimed over 8,000 lives globally, including four in India. "If the pandemic is contained in the next quarter, it will take two to three quarters before factories can operate at capacity, and the global supply chain starts to get back to normalcy," said industry chamber Assocham.

The report also expressed apprehension that with more people encouraged to work remotely and businesses shutting stores or plying lesser hours, the economy is expected to witness a fall in consumer confidence and spending. Another leading industry body FICCI said the coronavirus outbreak could gorge a deeper impact now as the global economy is already going through a slow phase currently, including China.

"A crisis of this magnitude can therefore translate into a bigger slump for the world economy at this juncture. Apprehensions regarding the current slowdown turning into recession also cannot be ruled out at this point of time," it said.

FICCI said there was a strong hope of recovery in the last quarter of this financial year.