Economy
Back breaking
Recovering from 2nd wave will be long and difficult
2nd wave of Covid-19 is harming small businesses such as restaurants and cafes. Mumbai and Delhi have announced curfews and partial shutdowns. Other states may follow. 2nd wave may peak in mid April.
Maharashtra government has asked non-essential businesses to remain closed after 8pm. Delhi government has imposed similar restrictions post 10pm. Only home delivery of food and essential items are allowed 24*7. Restaurants did not get the waiver. It is leading to similar impact as last year’s lockdown. Restaurants earn only 7% to 8% of the revenue from deliveries. Restaurant owners fear that they will not be able to pay wages and salaries. It may again lead to exodus.
As per Business Standard: Roughly 60 per cent of the restaurant market in India, pegged at Rs 4.25 trillion in size, remains unorganised, while 40 per cent is organised. Though store closures have been rampant in the unorganised market since the outbreak of the pandemic last March, organised players, too, are feeling the heat.
Prime Minister Modi has ruled out total lockdown. He has asked states to use vaccination, testing, and night curfews to fight the second wave.
