Corona cases are increasing rapidly across the country. Due to this, many states have imposed many restrictions on travel and trade. According to the Confederation of All India Traders (CAIT), the largest organization of the country’s business community, the retail market has suffered a loss of 30 per cent due to these restriction. Such measures such as night curfew, partial lockdown etc. imposed by the states to stop the corona infection have caused such a huge loss within just a week. According to CAT, lockdown and night curfew has created an atmosphere of fear in the minds of consumers. The Confederation represents 5 crore businessmen from more than 40 thousand trade associations across the country.
According to CAT, the movement of goods from one state to another has also reduced and such transactions between traders have come down by 15-20 percent. Apart from this, the number of customers in the retail market is also half i.e. 50 percent.
The rupee weakened due to this announcement of RBI, after investing for three months, foreign investors withdrew 929 crores so far in April.
Kat suggested Maharashtra CM regarding lockdown
According to CAT National President BC Bhartia and Secretary Praveen Khandelwal, the data of low customer presence and business decline in the market is based on data collected by traders in states like Maharashtra, Punjab, Uttar Pradesh, Karnataka, Rajasthan and Madhya Pradesh. Night curfew has already been announced in Delhi, Punjab, Gujarat, Odisha, Rajasthan and Uttar Pradesh, while some states including Maharashtra, Madhya Pradesh and Chhattisgarh have imposed resettlement lockdown. CAT had suggested Maharashtra Chief Minister Uddhav Thackeray to fix business hours from 11 am to 5 pm instead of complete lockdown.
No official data on Corona’s impact on MSMEs
According to CAT, Corona has a profound impact on MSMEs, but no official data is available on how much MSMEs are affected. According to a question given in the Rajya Sabha by MSME minister Nitin Gadkari in February 2021, the presence of these industries is not only in the formal sector but also in the informal sector. Apart from this, the central government does not even have the data of how many of these units have been closed permanently or temporarily.