IEIA Press Release Indian Exhibition Industry Association (IEIA) urges Central Government to support the exhibition sector which has incurred a revenue loss of Rs. 3570 crores in the COVID -19 crisis.

INDIAN EXHIBITION INDUSTRY ASSOCIATION (IEIA) 

PRESS RELEASE

Indian Exhibition Industry Association (IEIA) urges Central Government to support the exhibition sector which has incurred a revenue loss of Rs. 3570 crores in the COVID -19 crisis.

New Delhi, 1 April 2020: The COVID-19 pandemic across the globe has impacted the normal life of people resulting in socio-economic imbalance. The tremors of the economic impact is being felt among all industry sectors and exhibition industry is no different from that. The current situation has impacted the businesses of exhibitions industry across the world with shows being postponed and cancelled.   

The size of Indian exhibition industry is Rs.23,800 crores with more than 550 events conducted annually in the organised sector. The exhibition industry sector enables trade/business transaction of over Rs. 3,00,000 crores, boosting and supporting the growth of various spectrum of industries while also being a colossal employment provider with nearly 1,20,000 people employed in this industry. With a steady growth rate of almost 8%, the exhibitions sector has been consecutively growing during the past few years.

The Indian Exhibition Industry Association (IEIA), the apex body of the has submitted a representation to the Prime Minister’s Office, Ministry of Commerce, DPIIT, Ministry of Finance on the challenges that the sector is facing during this unprecedented times affecting the exhibition organisers, exhibition venues and numerous service providers who are completely dependent on this industry. IEIA has urged the government for intervention to support the sector, which has the potential to support the recovery of various other industries. 

While the association has submitted several relief measures some are listed below:

1. Reduction of GST rate for all exhibition services from existing 18% to 12% with immediate effect.
2. Deferment of the GST and Income Tax for 6 to 9 months.
3. Subsidise the venue rentals for govt. owned venues 
4. 100% Subsidy on participation charges to be given to MSME/NSIC units for participation in Domestic
5. 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.
6. 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.
7. Minimum 3 months Interest Free period for Loans / Bank Interests in the name of Firm / Individuals (Proprietors, Service Sector, Corporates & Industry Associations).
8. Insurance Regulatory Development Authority (IRDA) to consider covering risks for pandemics together with other natural disasters for the events and exhibitions.
9. Moratorium on loan principal and interest for a period of 6 to 9 months

Approximately 90 shows have been reported to be either postponed or cancelled due to COVID-19 during the time-period, summing up to approximately 15% of the total events conducted annually in the organised sector, with a resultant estimated loss of Rs. 3,570 crores for the entire sector.  Considering the preparation time for organising an exhibition which ranges from a minimum time-period of 8 to 12 months, the revenue and cash flow cycles for the sector have been adversely affected. The postponement or cancellation of these shows translates into doubling of the total turnaround time for realisation of the amounts incurred in the preparatory stages, while the organisers and allied service providers would bear the burden of fixed costs and salaries, etc. without any returns flowing in.

About IEIA

Indian Exhibition Industry Association (IEIA), was registered with the Registrar of Societies, Under Societies Registration Act XXI of 1860 Under No. 55/63 of 2006, in New Delhi. The association brings together all the exhibition organizers, managers, designers & stand contractors, freight forwarders, services & facilities providers, venue owners, etc. so that there is a common platform available to the entire industry to consider ways and means for the sound and scientific development of various facets of the industry.

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