With India being under a lockdown for over a month now, the retail sector has reported massive losses, impacting the GST revenues of the central and state governments.
With India being under a lockdown for over a month now, the retail sector has reported massive losses, impacting the GST revenues of the central and state governments. “The Indian retail sector has lost a gigantic sum of approximately Rs 7.50 lakh crore business in this period which has resulted in GST revenue loss to central and state governments to the tune of about Rs 1.15 lakh crores,” the Confederation of All India Traders (CAIT) said in a statement on Tuesday. For retailers, another big cause of worry also lurks as even after the government lifts lockdown, the customer footfall is expected to remain low with only 20% consumer turnover as compared to the pre-COVID-19 times.
Every one in five Indian retailers or about 20% of the country’s retailers are likely to face the heat of coronavirus and succumb to financial crunch with them shutting shops. This will also have a trickle down effect on another 10% of traders who are dependent upon these 20% traders who are also likely to collapse as a consequence, CAIT said.
Modern trade in focus after COVID-19
In the aftermath of coronavirus, businesses will need to collaborate and adapt to survive, the trade organisation said. Modern trade and digital payments will also be in focus as businesses will be forced to update themselves with changing times. “Upgraded and modernised retail format, health safety precautionary measures, round the clock internal security systems, adoption of digital and contactless payments and other business technologies,” will be the new paradigm of businesses, CAIT said. Further, kirana stores will also have to shift online to reach a wider audience and this will bring massive changes to the retail landscape. Meanwhile, Mukesh Ambani’s Reliance Retail has already started integration of physical shops with e-commerce with the JioMart platform.