Retail And Restaurant Sector In Crisis Due To Lockdown In States

Retail and restaurant sector in crisis due to lockdown in states, Fear of retail sector’s 75,000 crore NPA.

Due to Corona, the crisis of the retail and restaurant sector is getting deepened due to a lockdown-like situation in many big states of the country.

The ban on the sale of non-essential items in many states has led to fears of a Rs 75,000 crore debt implication (NPA) from the retail sector alone.

The situation is that the crisis of the jobs of 30 lakh people associated with the retail sector is looming. In many other states, including states with lockdown, only food packs are allowed from restaurants.

In such a situation, the restaurant sector has removed about 40 percent of its staff from the present job.

The Retailers Association of India (Rye) has also informed the Finance Ministry that the retail business is badly affected due to the second wave of Corona.

According to Rai, there is an investment of Rs 2.5 lakh crore in the retail sector and if immediate relief measures are not taken by the government, out of this Rs 75,000 crore may be NPA. Due to this, other sectors related to retail will also be affected.

Rai CEO Kumar Rajagopalan said that 80 percent of retail stores are closed due to different restrictions in different states. Customers are closed where they are open.

The retail store’s cash flow has completely ended, while there has been no reduction in fixed expenses.

He said that under the Emergency Credit Line Guarantee Scheme (ECLGS), along with MSMEs, now businessmen of the tourism sector can also take loans. But the retail sector does not have this facility.

Even with a ban on home delivery of non-essential items, the retail sector cannot do business through home delivery.

According to the National Restaurant Association of India, with the increase in corona cases, restaurants have been allowed to pack only food from restaurants in most places, but this amounts to only 20 percent of their total business on normal days.