Retail, wholesale trade loses 15L cr

New Delhi: THE second wave of Covid-19, subsequently followed lockdowns in various States, has caused a mammoth business loss of around Rs 15 lakh crore to India's domestic trade over the last 60 days, the Confederation of All India Traders (CAIT) said on Wednesday.

CAIT, which represents traders across India, said this is prompting small businesses to consider job cuts and cut back on other overheads. It estimated that traders could look at an estimated 30 per cent job cuts if restrictions continue and no financial assistance is provided to them.

"For the first time, traders across the country are contemplating to reduce the number of employees as they have been forced to cut down establishment expenses and overheads due to non-affordability of the recurring monthly expenses. If it happens, it will increase the unemployment figures, particularly when the retail trade in India has been described as the only source of disguised employment and the only sector which provides exponential streams for self-employment in India," a CAIT statement said.

There are an estimated 8 crore small businesses engaged in trading activities in India, as per estimates by CAIT, providing direct employment to nearly 40 crore people.

India's second and more severe wave has once again led to a prolonged closure of busy markets, malls and wholesale markets. Trade, barring that of essential goods, has come to a standstill.