Several states in the country have imposed strict bans to reduce the rising number of Covid-19 cases. Traders in urban centers like Mumbai and Delhi are suffering massive losses due to tighter lockdowns.
Merchants in Delhi have suffered a collective business loss of 25,000 rupees in just 25 days. (Photo: PTI)
Tight restrictions imposed in various states due to the second wave of Covid-19 have resulted in a 5 billion rupee business loss across India, according to the Confederation of All India Traders (CAIT).
Several states have put tough lockdowns in place to limit the spread of Covid-19 during the more deadly second wave that overwhelmed the country’s healthcare system. As a result of the tighter lockdowns, traders in key urban centers such as Mumbai and Delhi suffer massive losses on a daily basis.
Retailers across the country lost Rs 3.5 billion in business while wholesalers lost Rs 1.5 billion. The loss of business was estimated by the CAIT Society for Research and Trade Development in consultation with the trade organization of various states.
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The reason for the loss of business is a sharp reduction in customer frequency. CAIT states that the new Covid-19 curbs have reduced visitor frequency across the country by around 80 percent.
The study suggests that all of the major states suffered greater proportions of losses. For example, traders in Delhi lost 25,000 rupees in just 25 days.
Praveen Khandelwal, CAIT general secretary, said Delhi retailers lost 15,000 rupees worth of stores while the remaining loss was recorded by wholesale companies in the city.
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Businesses across the country are affected due to tighter restrictions. The second wave has already hit several sectors and unemployment has risen again. The situation could get worse, though States are striving for stricter containment strategies.
Experts have warned that India’s economic recovery could be severely affected if the number of new Covid-19 cases continues to increase at the current pace. India has reported over three lakh cases a day for the past few days. On Tuesday, India reported over 3.23 lakh new cases and over 2,700 deaths.
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