The pressing issues facing the Indian retail industry have not been addressed in the economic stimulus package, according to Retailers Association of India (RAI) chief executive officer Kumar Rajagopalan, who recently said that with no income and zero support from the government, the industry does not have the ability to support employees.
This will lead to a massive slowdown in consumption that will further harm the economy and the country, he said.The pressing issues facing the Indian retail industry have not been addressed in the economic stimulus package, according to Retailers Association of India (RAI) chief executive officer Kumar Rajagopalan, who recently said that with no income and zero support from the government, the industry does not have the ability to support employees.#
Retailers need working capital to retain employment and 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 was quoted as saying by a news agency.
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", according to a statement from RAI.
The retail industry, which contributes around 40 per cent to India's consumption and 10 per cent to the gross domestic product, 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", it said.
Even the relief measures offered to micro, small and medium enterprises by the government do not help retailers as retail is not covered under the MSME sector, the association added.
Fibre2Fashion News Desk (DS)
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