RAJKOT: The famed engineering sector of Rajkot, which was badly hit by Covid-induced lockdown and exodus of migrant workers, is witnessing a sparkling turnaround this Diwali.
Thanks to a surge in exports and uptake in the domestic market too, the unit owners who had either slashed salaries or delayed wages for months, are now loosening their purse strings to dole Diwali bonuses to their employees.
In fact, such is the demand that the units have cancelled Diwali vacation to meet the orders, mostly coming from Africa and European countries who are looking to source some important engineering goods, auto parts, ball bearings, agriculture pumps and others from India due to anti-China sentiment.
“This is the first time in the history that the week-long vacation that starts on Diwali day has been cancelled,” said Parth Ganatra, vice-president, Rajkot Chamber of Commerce and Industry (RCCI).
The share of export in the engineering sector has also increased to nearly 50% from pre-Covid 35%. There has been strong demand for agricultural tools from African countries in addition to auto parts and pumps. Some companies in Rajkot had even arranged for flight tickets for their skilled migrant labourers in the wake of the boom.
The engineering goods sector, which has an annual turnover of nearly Rs 10,000 crore, employs about five lakh people in roughly 18,000 units in Rajkot.
The bonus is also a gesture of gratitude by the owners to the employees who stood by them in the difficult months. Most employees will get one month or one-and-a-half-month salary as bonus.
Nirmal Patadia an accountant with an engineering firm in Metoda GIDC said, “This bonus is a surprise Diwali gift as I was worried about the expenses in the festive season. I did not expect any bonus this year because of the recession.”
“Despite fear of a second Covid wave in December, we expect good demand in the next financial year. We have paid bonus to our employees as per our commitment before Dussehra because they are our assets,” said Chandra Mouli, vice-president, Echjay Industries.