The Indian exhibition industry, hit hard by Covid-19, has appealed for an immediate support package from the government to ride out the crisis.
Indian Exhibitions Industry Association (IEIA) the apex body of exhibiting and tradeshow industry, has urged the government in New Delhi to immediately intervene and create an economic support package for the industry to relieve some of the stress the industry is going through.
A statement from the IEIA says that, since the outbreak of the Covid-19 pandemic, the impact on the exhibition and tradeshow industry has been unprecedented with multiple global and national events being postponed or cancelled in the country.
In last few weeks more than 90 shows have been reported to be either postponed or cancelled due to Covid-19, the IEIA said in a statement. It said that approximately 15% of the total events conducted annually in the organised sector were now affected, with a resultant estimated loss of Rs. 3,570 crores for the entire sector.
“The size of Indian exhibition industry is Rs.23,800 crores with more than 550 events conducted annually in the organised sector,” the IEIA President Mr S. Balasubramanian said.
Another blow for the sector was the Export Promotion Council for Handicrafts (EPCH) recently cancelling, due to coronavirus, the spring edition of IHGF Delhi fair (15 April), which many consider to be the world’s largest congregation of handicrafts and gifts items.
Organisers had been expecting 7,000 overseas volume buyers and over 3,200 small and medium handicraft manufacturers and exporters as exhibitors from various parts of the country.
“The fair normally generates large export orders and is estimated as a source of livelihood for seven million people involved in various craft professions and many from the weaker section of society,” said Rakesh Kumar, Director General, Export Promotion Council for Handicrafts.
“These are unprecedented times and we are requesting the Prime Minister’s Office, Ministry of Tourism, Ministry of Commerce and the Ministry of Finance to take note of the challenges affecting the exhibition organisers, exhibition venues and numerous service providers who are completely dependent on this industry. We request the government for intervention to support the sector, which has the potential to support the recovery of various other industries,” said Balasubramanian in his letter to government from the IEIA.
IEIA is urging the Government of India to create an ‘Exhibitions in India’ economic stimulus support package and offer a 10% incentive to Indian exhibition management companies to organise shows in India and help recover the losses incurred in these critical times.
The IEIA is also calling for a reduction of GST rate for all exhibition services from the existing level of 18% to 12% with immediate effect. It is also asking for a deferment of the GST and Income Tax for 6-9 months, and subsidies for venue rentals for government owned venues.
Other demands from the industry include collateral free working capital loans facilities for exhibition organisers, service providers and venue owners (for payment of salaries, wages, fixed costs etc.) to be made available at zero rate of interest.
The IEIA is calling also for financial support to exhibitors to participate in all exhibitions to be scheduled post relaxation of advisories on bans of events by way of direct funding.
IEIA has more than 250 members across the nation and represents a wide range of suppliers, organisers and venues in its membership.
