NE BUSINESS BUREAU
AHMEDABAD, SEPT 8
With no band, baja, and baraat for over five months owing to lockdown caused by coronavirus pandemic, wedding-related industry has taken a hit of over Rs 5K crore. This has also affected the livelihood of over five crore persons working in this industry, say industry leaders.
The impact of this has not even spared Rs. 10,000-crores worth giant wedding, events and exhibition industry from experiencing the recession. In Unlock 4, the government has allowed weddings and other events with a limit of 100 persons. The industry leaders have demanded that 50 percent capacity of the venue should be the limit to infuse life into this industry.
The industry, which so far was giving a noticeable contribution to the nation’s GDP growth, has been facing death knell with a total estimated loss of Rs. 5,000 crores. If concrete, proper relief, and revival measures are not taken, then it is likely that the industry would be left with no option but to make a total closure; leaving millions of families unemployed.
Taking this prevalent situation into the consideration, Monday, the representatives of The Federation of All India Catering, The Event Management Federation, The Indian Exhibitors, Conferences, and Events Services Association, VPAG, VPEERA, and Mandap Décor, Dyers and Electrical Association, and leading industrialists jointly made requests to the Central Government and State Government to announce a relief package for this industry and to remove the upper limit of allowing just 100 persons to be invited for the events. The association also demanded some relief in the GST, which is ranging between 5 to 28 % in different sectors, of this industry, relief in income tax for two years, a facility of direct deduction of GST from the payment of bills rather than advance payment of the GST, and increase in cash credits from the banks, etc.
Speaking to the media, The Federation of All India Catering President Narendra Somani said, “At present, according to the guidelines of the ‘Unlock’, the upper limit for inviting the guests for a marriage function is set at 100 persons, which is not sufficient to meet the expectation of the industry. Thus, we demand that governments should increase the invitation limit for the number of guests.”
When asked about the pay cuts and lay-offs in the industry, Somany said, “We have been paying 50 percent of the salary to the staffers on the humanitarian ground so far despite having zero revenue. We have also resorted to limited layoffs in unavoidable circumstances.”
The Founder and president of The Event Management Federation, Dr. Jaideep Mehta said, “Due to the prevalent worldwide pandemic situation, caused by ‘COVID-19’, the economy is facing huge losses. It has severely, adversely affected small as well as big industries alike. The businesses are facing problems of complexity, uncertainty, and non-confidence about their future. We are very appreciative of the ‘Corona Warriors’ and the Governments for their untiring efforts in bringing back the normalcy in the economy. Albeit, there are problems, but we must move ahead in life. Of course, the governments’ strategy of unlocking for sustaining the existence of thousands of industries has definitely provided “oxygen” to them. However, Wedding, Event, and Exhibition industries have not been benefitted enough reliefs and relaxations from the ‘Unlocking Guidelines.’
The Indian Exhibitors, Conferences, and Events Services Association’s Jatin Patel (Devdhar) said that in the current prevalent situation, the exhibition organizers and suppliers are trapped in very tense and stressful situations. Their future has become blurred and they are not able to visualize any chance of revival in this sector. The ‘Lockdown’ imposed since March 2020, has not yet been opened up for this sector. This sector is giving direct noticeable contributions to the growth of every industry and the Indian economy. In the last five months, every business pertaining to this sector has incurred huge losses. The real business in this sector can be resumed only after six to eight weeks from the date of its reopening. For the resumptions of activities of this sector, the IEI and ITPAO had written a letter to the government last July, but, no sanction has been given, so far.
The Mandap and Electrical Association’s Pintubhai (Poojan Decorators) said that “This pandemic has severely affected our businesses. As a representative of this industry, I am appealing to the government to ease the imposed prohibitions, so, we can resume our businesses. We are assuring the government that we would strictly follow the guidelines of the governments.
Video and photographer Association of Gujarat leader Harshad Jatakiya said that in today’s world the photography and videography have become inevitable elements in celebrating occasions such as marriage, birthday, religious, social, political, and business events. The majority of the people attached to this sector are self-employed. At present, this business is also on the death-bed. For the people who are attached to this business, it has become almost impossible for them to earn the livelihood for the self and their family members. They are now not even capable to repay the installments of their loans borrowed for the business and other legal dues. Therefore, we are requesting the governments that for the next wedding season, starting from November – 2020, the guests’ limit should be increased to 400 to 500 for a marriage function.”
