Indian retail sector lost Rs 9 lakh crore in 60 days under lockdown: CAIT

By

Isabelle Crossley

Published
May 26, 2020

The Confederation for All India Traders has estimated that India’s retail trade has lost business valued at Rs 9 lakh crore ($121.8 billion) over the past 60 days during lockdown and traders are in need of support.

 
India’s domestic trade is currently facing one of its biggest challenges yet. Lockdown saw stores close across the country and even though some have reopened, business remains down, CAIT said on Sunday, the Press Trust of India reported. Some ‘non-essential’ shops are now open at a limited capacity in green and orange zones while other retail establishments including malls remain closed all together.
 
The traders’ body also reported that, since last Monday when many businesses could reopen at a limited capacity during the extended lockdown, they registered only around 5% of business compared to before and only around 8% of the workforce could go back to work. Around 80% of workers have returned to their homes due to lockdown, according to CAIT.

The Rs 9 lakh crore loss of business has in turn caused the central and state governments to lose Rs 1.5 lakh crore in goods and services tax revenue, according to CAIT. This presents a challenge for the Union Government as its funds are down at a time when many citizens are in dire need of financial assistance.
 
Many traders are struggling financially, according to CAIT. Due to a lack of government support, many traders are worried that their businesses could fail, CAIT’s secretary general Praveen Khandelwal said.