Chandigarh: The US debt crisis triggering bloodbath in market around the world has sent ripples to the manufacturing industry in Punjab.

The economic crisis in the US has begun to show early signs of impact on the exports of hand tools and sports industry in Punjab, while mild effect can also be seen on the leather industry. One of the main causes of worry for exporters in Punjab is the uncertainty of the US dollar.

The US is the largest market for exports of hand tools from Punjab. Hand tools worth around Rs 650 crore are exported to America.

According to Chairman of Hand Tools Panel of the Engineering Export Promotion Council (EEPC) Sharad Aggarwal, exporters have already started to withdraw from the US market as re-payment issues will crop up.

“The effect of the US economic meltdown can be seen in coming days as orders will stop, payments will get stuck and exporters will have to increase their capital,” he said.

Meanwhile, Rajesh Mayor of Jalandhar based Mayor & Co which supplies football and boxing equipments to America has started eying domestic market.

“We are going through this situation for the second time. We have witnessed 50 percent fall in the order already,” said Rajesh.
But Praveen Kumar, Chairman of Raghu Exports said presently there is no effect of lower credit rating but it will soon have repercussions on the leather industry.

The Rs 500-crore leather industry in Jalandhar will definitely get affected by the US economic crisis. Due to weakening US dollar, the industry will surely be battered.

JPN/Bureau