8 crore retail, wholesale traders incur Rs 6.25 lakh cr business loss due to Covid restrictions

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Updated: May 09, 2021 12:33 PM

Out of the total business loss of Rs 6.25 lakh crore, there was an estimated loss of about Rs 4.25 lakh crore to retail businesses whereas wholesale trade suffered a loss of around Rs 2 lakh crore, according to CAIT.

textile industryAccording to the government, there are two types of investment possible with a different set of incentive structure under the PLI scheme.

Covid impact on MSMEs: Around 8 crore traders in India have suffered a cumulative business loss to the tune of Rs 6.25 lakh crore during April due to multiple Covid restrictions including lockdowns, curfews, etc., enforced by state governments. The apex body for traders’ community Confederation of All India Traders in a statement had shared the data sourced from over 40,000 associations representing around 8 crore traders under its umbrella. “The total business loss in the Country due to covid pandemic stands at about Rs 6.25 lakh crore for the month of April…The cumulative revenue loss to the government stands at about Rs 75,000 crores,” CAIT said.

Out of the total business loss of Rs 6.25 lakh crore, there was an estimated business loss of about Rs 4.25 lakh crore to retail businesses whereas wholesale trade suffered a loss of around Rs 2 lakh crore, according to CAIT’s National President BC Bhartia and Secretary General Praveen Khandelwal. “Certainly the business loss figures are not only high and speak about the devastation of the domestic trade but the corresponding figures of death due to covid cannot be overlooked.”

The confederation on Sunday in a communication sent to Prime Minister Narendra Modi urged for a national lockdown to control the pandemic. It also requested for setting-up of a ‘Pediatric Task Force’ to counter the third wave where children could also get infected.

Also read: Govt buying from MSEs declines for second consecutive year even as share in overall procurement jumps

Federation of Retailer Association of India (FRAI), which represents around 4 crore micro, small, and medium retailers in the country, had told Financial Express Online last month that the lockdown restrictions may cost at least around 40 per cent of the monthly earnings of micro retailers. “The impact will be across sectors particularly for non-essential categories while kirana stores may have some respite much like last year. If there is a complete and prolonged lockdown across the country then stores retailing non-essential goods and services will be reduced to zero revenue and would have to shut down,” Vinayak Kumar, Secretary-General, FRAI had told Financial Express Online.

India, on Sunday, reported over 4 lakh cases for the fifth straight day even as the number declined marginally to 4.03 lakh cases from 4.14 lakh cases on Thursday. While Tamil Nadu, Karnataka, Kerala, Bihar, Delhi are under complete lockdown, states including Maharashtra, Punjab, Uttar Pradesh, Jharkhand, Gujarat, Telangana etc., have announced stricter restrictions and weekend or night curfews, etc.

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