CAIT warns of collapse of small businesses

Traders body, Confederation of All India Traders (CAIT), on Sunday warned that nearly 1.75 crore small business were on the verge of closure as a consequence of COVID-19 and related restrictions.

The pandemic had brought traders in the country to their knees with no sign of respite in the near future, given that there was no support from Central or State governments, CAIT said in a statement.

The body also hit out at banks for not extending formal finance to small businesses as a consequence of which most traders were dependent on informal sources to meet their requirements. What pinches traders is that all other sectors of the economy were considered worthy of being included in the financial package despite ensuring smooth supply of goods during the lockdown, said CAIT president Praveen Khandelwal.