Indian Businesses Suffered Loss Of Rs 15 Lakh Crore During Second COVID-19 Wave

Due to the lockdown in several states to control the spread of second wave of coronavirus, India's domestic businesses have suffered losses to the tune of ₹15 lakh crore in the last two months, said the Confederation of All India Traders (CAIT).

The confederation put out a state-wise breakup of the business losses with Maharashtra suffering the maximum( ₹1.50 lakh crore) followed by Delhi (₹40,000 crore); Gujarat (₹75,000 crore); Uttar Pradesh (₹85,000 crore); Madhya Pradesh (₹45,000 crore); Rajasthan (₹35,000 crore); Chhattisgarh (₹27,000 crore); Karnataka (₹70,000 crore), and Tamil Nadu (₹80,000 crore).

"Out of the total business loss of about Rs 15 lakh crore, retail business incurred a loss of Rs 9 lakh crore while the wholesale trade suffered a loss of about Rs 6 lakh crore," said Praveen Khandelwal, National General Secretary of CAIT, reported India Today.

As the localised lockdowns have contributed to the losses, the informal trade sector has to bear the brunt of the restrictions in the states. The traders are also mulling over reducing the numbers of employees as they are unable to bear the recurring expenditure without an income.

Traders across the country are contemplating to release at least 30-40 per cent of their workforce as they are unable to pay the salaries.

CAIT National President BC Bhartia stated that there were about 8 crore small businesses in the country involved in trading activities employing nearly 40 crore people. If businesses had to resort to laying off, it would lead to a significant rise in unemployment in the country.

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