Retailers association miffed at eco package, says emergent issues not addressed

Lack of support will result in closure of businesses, and jeopardise livelihoods and jobs of 46 million direct employees out of which 20 million work in non-essential retail.

   
retail sector KPMG report

The Retailers’ Association of India (RAI) expressed disappointment with the ‘Atmanirbhar Bharat’ economic stimulus saying emergent issues facing retailers have not been addressed. The retail industry body also said that with “no income and zero support from the government”, retailers are staring at closure of businesses that would jeopardise livelihoods and jobs of 46 million direct employees, out of which 20 million work in non-essential retail.

“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,” RAI Chief Executive Officer Kumar Rajagopnoalan said in a statement.

The retail industry, which contributes around 40 per cent to India’s consumption and 10 per cent to India’s gross domestic product, is severely stressed, he added.

“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,” Rajagopalan said.

He asserted that some earlier measures announced as part of the Rs 20-lakh crore economic package by Finance Minister Nirmala Sitharaman, such as 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.”

“Even the relief measures offered to MSMEs (micro, small and medium enterprises) by the government do not help retailers as retail is not covered under the MSME sector,” he said.

Reiterating that retailers need working capital in their hands to retain employment, Rajagopalan said, “Lack of support will result in closure of businesses, and jeopardise livelihoods and jobs of 46 million direct employees out of which 20 million work in non-essential retail.”

He further said, “With no income and zero support from the government, the industry does not have the ability to support them. This will lead to a massive slowdown in consumption that will further harm the economy and the country.”
 






Trending

layoff

Labour ministry data: 3557 workers affected by lay-offs across India between January and June

ecommerce festival sale

E-tailers poised to clock $7 billion festive month sales in 2020: RedSeer

Changing landscape of healthcare start-ups amidst COVID-19

A changing landscape of healthcare start-ups amidst pandemic

Insurance For MSMEs Is A Key Ingredient Towards Nurturing The Atma Nirbhar Bharat

Insurance for MSMEs is a key ingredient towards nurturing the Atmanirbhar Bharat

How AI and deep learning are becoming artificial eye for visually impaired people

This Indian startup is giving an artificial vision to visually impaired people using AI and Deep Learning

25 - 20 million MSMEs lost jobs

US restrictions on textile imports from China may augur well for India: ICRA

real estate construction

Weak outlook for builders to affect cement and steel demand: Fitch Ratings

ease of doing business

Promotion of industry and internal trade identifying ease of doing business reforms with states

micro industrialization process

Ministry of MSME re-activates micro industrialization process in rural India

indian export piyush goyal

Piyush Goyal: double digit growth in exports show rapid economic recovery

auto sales

India’s 2020 auto sales to decline by 30%: Moody’s

bamboo plantation

Government launches 22 bamboo clusters in 9 States and new logo for NBM