India’s domestic trade is facing its worst days of the century due to COVID 19. With no sign of immediate relief in the near future, it has made traders across the country stand on their knees. Commenting on the nation’s economy, the Confederation of All India Traders (CAIT) said that due to lack of any support package for relief from COVID from both the central and state governments, about 25% of small traders across the country have about 1.75 crore. The shops are on the verge of closure, which will be most disastrous for the country’s economy.
Indian domestic trade which is the largest self-organized sector in the world but has been wrongly described as an unorganized sector. It is one of the most comprehensive business worldwide comprising more than 70 million merchants, employing over 40 crore people and having an annual turnover of 60 million crores. About 8 thousand main commodities are traded in the domestic trade of India and under each main trade category, India’s trade is contained in many types of trading categories. The banking sector has so far failed to provide formal finance to the sector as only 7% of small businesses are able to get finance from banks and other financial institutions. The remaining 93% of merchants rely on many other information sources to meet their financial needs.
Nothing found in the economic package
CAT National President BC Bhartia and National General Secretary Mr. Praveen Khandelwal said that Corona has sucked the blood of Indian domestic trade which is currently fighting hard for its survival. The domestic trade market of the country was going through a major financial crisis since before Covid and in the post-COVID period, the business has come under the unusual and high level of financial pressure. Traders are finding themselves highly handicapped to revive their business. There was also no provision of one rupee for small businesses in the package of Rs 20 lakh crore announced by the central government, nor any state government of the country gave any financial assistance for small businesses.
Closure of shops will increase unemployment
Bhartia and Khandelwal said that if 1.75 crore shops are closed in India, the complete neglect and apathy of the traders of the central and state governments will be responsible for this. Certainly, there will be an increase in the number of unemployed in India, due to which the economy will suffer a major setback, while Prime Minister Modi’s local Vocal and self-sufficient India campaign will suffer a big loss.
He further said that the payment of central and state government taxes on traders, formal and informal sources, EMI, water and electricity bills, property tax, payment of interest, payment of wages to meet the monthly installments of loans taken Has a huge financial burden.
CAT has urged Prime Minister Narendra Modi to take immediate cognizance of this burning issue of traders and announce a package policy for traders and help them in the revival of their business.
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