NE BUSINESS BUREAU
MUMBAI, APRIL 22
As the country’s retail sector is near standstill amid the coronavirus crisis and the nationwide lockdown, the Retailers Association of India (RAI) has urged the government to provide wage subsidy of up to 50 percent on salaries up to Rs 25,000 and moratorium of 6 to 9 months for repayment of loans.
RAI presented its submission on the challenges faced by the retail industry represented by key members of its national council on Wednesday here, a statement said.
It recommended a way forward to support the industry and the nation’s economy to help overcome the challenges brought on by the COVID-19 pandemic.
“The industry’s appeal to the government to help the retail industry survive included stronger policy and fiscal interventions in the form of support for wages; moratorium for payment of principal & interests and support in the form of working capital,” it said.
B.S. Nagesh, Chairman of RAI, noted that the retail industry employs about 4.6 crore people, and not opening non-essentials can have a serious impact on 2-2.5 crore employees.
“India is all about consumption and retail is a gateway to consumption. If retail is not open, it’s going to have a serious impact on other sectors such as manufacturing, entertainment and artisans among others. If retail loses a million jobs, it will have a livelihood impact of at least 5 to 6 million,” said Nagesh.
Representing a wide array of businesses within retail were Kumar Rajagopalan, CEO, RAI, Kulin Lalbhai, Executive Director of Arvind Ltd; Rakesh Biyani, Managing Director of Future Retail; Sandeep Kataria, CEO, Bata India Limited; Rahul Mehta, Managing Director of Creative Garments Pvt. Ltd. and Chief Mentor & Former President of CMAI; and Atul Ruia, Managing Director of Phoenix Mills which has to be largest mall space in the country. Together they presented their expectations from the government and their suggestions on what’s critical to survival, revival and rebooting the industry and, in effect, the economy.
The industry body asked the government to help retain jobs in the sector through wage subsidies up to 50 percent of wages of blued collared workers on salaries up to Rs 25,000 on minimum wages, whatever is higher.
It has also asked for 25 percent additional working capital credit line to pay salaries and wages, along with a reduction in GST for the retail sector.
