Businesses have lost Rs 75,000 crore to the Covid-19 lockdown this year while almost 50 per cent of the workforce lost jobs in the past one and a half years, according to the Federation of Karnataka Chambers of Commerce and Industry.
Speaking to news reporters here on Thursday, FKCCI president Perikal M Sundar said that while the lockdown last year had hit trades and industries hard, some recovery was seen by the start of 2021. But the second wave and the resultant lockdown wiped out all the gains, pushing businesses and employees in the red again. "Out of our 80 lakh registered employees, 30-40 lakh have lost jobs since the pandemic began," he explained.
Sundar said the major portion of the Rs 75,000-crore loss was contributed by the statutory payments that businesses have to make even if they are shut. These include electricity bills, employee salaries, interest payments and other fixed overheads. The worst-hit sectors were hospitality, cinema and education.
The exchequer also lost Rs 10,000 crore in revenue because of the shutdown. "It would take at least two years for businesses and medium- and small-scale enterprises to recover from these losses," he said.
Costlier raw materials
To make things harder, the cost of raw materials has doubled in recent times. The rising prices of fuel, pulses and edible oil also burdened the trade and industries, Sundar said.
He said the FKCCI had submitted 50 memorandums to central and state governments expressing their concerns and making suggestions. While the government has addressed some grievances, many demands remain unfulfilled, said Sundar.
"The FKCCI strongly urges the government to come up with the necessary schemes and grants to assist the trade, industry and business community at this crucial time,” Sundar said.
What businesses want
Some of the FKCCI's immediate demands include permitting all trade and business in the Central Business District from 6 am to 2 pm, restarting the BMTC buses to facilitate workers' commute and reducing the power tax from 9 per cent to 3 per cent. It also recommended that the state government source all its procurements from local MSMEs.