MUMBAI: While expressing reservations about the package announced by the central government, the retail industry has demanded working capital. The package will not help us immediately and may push 46 million people to joblessness, the Retailers Association has warned.
“Retailers need working capital in their hands to retain employment. Lack of support will result in closure of businesses and will jeopardise the livelihoods and jobs of 46 million direct employees, out of which 20 million work in non-essential retail.
With no income and zero support from the government, the industry doesn’t have the ability to support them. This will lead to a massive slowdown in consumption that will further harm the economy and the country,” said Kumar Rajagopalan, chief executive officer of Retailers Association of India(RAI).
Some earlier measures like reduction in TDS rates for payments or 2 per cent reduction each in the EPF contribution of both the employer and employee are minor measures that fail to provide the monetary support needed to keep a business functioning, he added.
“The RAI is of the view that the steps taken under the Atmanirbhar Bharat economic stimulus will help the country in the long term, but the emergent issues facing the retail industry have not been addressed.
The retail industry, which contributes around 40 per cent to India’s consumption and 10 per cent to India’s Gross Domestic Product (GDP), is severely stressed.
What retailers needed was wage support, moratorium for payment of principal and interests and support in the form of working capital. This is critical for retail to survive. Even the relief measures offered to MSMEs by the government do not help retailers, as retail is not covered under the MSME sector,” he stressed.
