Retail businesses await government’s announcement of fiscal stimulus for the sector

New Delhi: A day after Finance Minister announced big sops for the MSME sector in her first tranche of the Atmanirbhar Bharat Abhiyan economic package of Rs 20 lakh crore, now retail businesses are also hoping for some similar announcement for the sector.

Almost 20% small retail businesses are eagerly waiting for some kind of a fiscal relief package for the sector so that they can face the impact on their business after the COVID-19 pandemic.

The Confederation of All India Traders (CAIT) said that Prime Minister Narendra Modi’s call on Vocal for Local can be fulfilled through the small traders because they are the one point contact for the country’s 130 crore people.

Through a video conferencing CIAT apprised the Finance Minister details of expectations from the small retailers after consulting with the latter.

CIAT’s National President B C Bhartia and National Secretary General Praveen Khandelwal listed a few demands in terms of relief package for the sector. These include fiscal health for paying the workers, waiving loan interest taken during lockdown period, expansion of Mudra loan from Rs 10 lakh to 25 lakh for the maximum limit, employer relief in ESI and EPF contribution for 6 months.

Bhartia and Khandelwal also suggested that government should announce special loan for small retailers at 3 percent rate of interest which should be payable in 60 equal instalments, the first to start in 2021. CAIT also demanded that under RBI’s investment scheme, the turnover limit for a year should be reduced from Rs 300 crore to 10 crore, so that they can get some respite in billing.

CAIT also said that bank charges for digital payment should be exempted via government subsidy. There are almost 7 crore small retail businesses which employe over 40 crore people and have a cumulative annual business of Rs 50 lakh crore.