Belagavi's Industrial Slowdown: Exports Drop 50%, Jobs at Risk
Industrial activity across Belagavi's major industrial estates has slowed down sharply. This includes areas like Udyambag. The slowdown is hitting both small and large enterprises hard. It is triggering serious concerns over employment stability in the region.
Steep Export Fall Forces Production Cuts
A steep fall in exports to overseas markets has resulted in reduced orders. This situation is forcing many industrial units to cut their production significantly. Many factories are now operating at barely 50% of their capacity.
Industries in Belagavi export a wide range of products. These include hydraulic valves, steel valves, and automobile components. They also export specialised sensors used in aircraft. Key markets are the US, Canada, Germany, Australia, Sri Lanka, and China.
However, weakening global demand is creating major problems. High tariffs and volatility in international markets have significantly dented production. Export volumes are estimated to have dropped by nearly 50%. This sharp decline leaves entrepreneurs uncertain about future orders.
Multiple Challenges Squeeze Profit Margins
Industrialists say month-to-month fluctuation in demand makes planning operations difficult. Rising raw material prices add to the pressure. Increased transportation costs and global market instability have further eroded profit margins. This financial strain is pushing several units into serious trouble.
As a precautionary measure, many factories have stopped overtime work. They have also frozen fresh recruitment. Industrial bodies are now urging the government to step in with immediate relief measures.
Industry Demands Government Intervention
Their demands are clear and urgent. They want the government to fast-track large infrastructure projects. This would boost local employment. They are asking for access to low-interest loans. Concessions in electricity tariffs are another key request.
Extending tax relief and export incentives is also on the list. Supporting efforts to explore new domestic and international markets is crucial for recovery.
Prabhakar Nagarmunoli, president of the Belgaum Chamber of Commerce and Industries (BCCI), spoke about the situation. He said most industries have slowed their operations. Micro and small units are hit particularly hard by GST-related issues. The non-release of subsidies since 2021 is another major problem.
"Many large industries depend heavily on the US market," Nagarmunoli explained. "Overseas buyers asked them to delay shipments due to the ongoing tariff dispute." He added that the discontinuation of several flights from Belagavi airport has also affected large industries. This has contributed to workforce rationalisation efforts.
Official View Attributes Slowdown to Global Factors
Satyanarayan Bhat, joint director of the District Industries Centre, offered a different perspective. He attributed the slowdown primarily to global uncertainty. "The main reasons are international tensions and ongoing wars," Bhat stated. "I do not think the suspension of flights from Belagavi airport had a major impact on industrial growth in the city."
Scale of the Problem and Future Warnings
Belagavi district has nine industrial estates. There are around 43,000 registered industrial units here. This includes nearly 33,000 MSMEs and about 10,000 small and large industries. Together, they employ over 2.5 lakh workers.
Entrepreneur Rohan Juvali issued a stark warning about wider consequences. "If timely and concrete measures are not taken, the downturn could have a serious impact on employment," he said. Juvali called for proactive government intervention to revive industrial growth in the region.
