The retail industry represents an investment of ₹2,50,000 crore and close to ₹75,000 crore would turn into non-performing assets (NPA), if the Reserve Bank and the Centre do not take urgent measures to address the working capital challenges, RAI said, according to media reports.
"Retail businesses across the country are among the worst hit as several states have mandated lockdown of malls and shopping complexes where most modern retailers operate. The industry is finding it hard to survive through the immense financial stress that is threatening to derail businesses," the association said in a statement.
RAI has recommended that the government and the Reserve Bank take appropriate action to bring some relief to the retailers of the country. In a submission made to the ministry of finance, the association asked to extend the benefits of ECLGS 3.0 to retailers as additional funding can help them revive their businesses, protect jobs and generate employment.
The situation has put about 3 million jobs at risk in the retail sector and can impact the associated sectors that depend on it. RAI added that close to 10 million jobs in the textiles sector are at risk.
RAI has also urged RBI and the ministry to raise the working capital limit by 30 per cent and reduce the interest rate on loans to 6 per cent through mechanisms like interest subvention schemes. Kumar Rajagopalan, CEO of RAI, said that the cash flow of the industry is at a standstill while operating costs continue to be the same. The industry will find it hard to survive the second wave of the pandemic, if relief packages are not provided by the government.
Fibre2Fashion News Desk (KD)
Textiles | On 21st Aug 2021
Egypt has allocated EGP 125.7 billion in public investments for the...
Hohenstein Institute America has developed a quantification method...
Textiles | On 20th Aug 2021
Cotton exports from Uzbekistan are expected to rise in the coming...
Textile Industry Head honchos
Biggest learning was adaptability
Great step towards realising end goal of 'AtmaNirbhar Bharat'
Florian Heubrandner Lenzing AG
Cannot see the world breaking away from cotton & polyester
Ritu Oberoi
Established in 2018, Forsarees is a socially driven business enterprise,...
Susanna Koelblin
Founded in 1920, Eastman is a global specialty materials company that...
Ujjval Saraf
Founded by Jimmy Lai, Giordano International Ltd, a Hong Kong based...
Johann-Philipp Dilo Dilo Group
German company Dilo Group is one of the leading equipment suppliers of...
Dave Rousse INDA
INDA, a global association of the nonwoven fabrics industry, has been...
Robert Brookins Alexium International
Alexium International is a specialty chemical development company...
Sandeep Gonsalves & Sarah Gonsalves Sarah & Sandeep
Established in 2012, Sarah & Sandeep is a luxury menswear label...
Megha Kumari & Jigar Mali Label Megha & Jigar
New Delhi based label Megha & Jigar blends India's unique handcrafts...
Aprajita Toor Aprajita Toor
The creations by <b>Aprajita Toor</b> were born out of a deep desire to...
Press Release
Letter to Editor
RSS Feed
Search Companies
editorial@fibre2fashion.com
Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.
Subscribe today and get the latest information on Textiles, Fashion, Apparel.