Delhi’s business sector suffers a loss of ₹3,000 crore; fears of losses exceeding ₹10,000 crore by Diwali

Persistent protests and demonstrations in Delhi have reportedly caused a loss of ₹3,000 crore to the business sector in October. The Chamber of Trade and Industry (CTI) has warned that these losses could surpass ₹10,000 crore by the time Diwali arrives.

The impact of the ongoing protests and demonstrations in Delhi throughout October is now becoming evident in the business sector. The Chamber of Trade and Industry (CTI), an organization representing traders, claims that Delhi’s businesses have already incurred losses of approximately ₹3,000 crore so far in October. The organization has warned that if these protests do not cease by Diwali, the total loss to businesses could exceed ₹10,000 crore.

According to CTI Chairman Brijesh Goyal, the protests on October 10 resulted in a loss of about ₹2,000 crore. Furthermore, between October 13 and 16, the blockade in Central Delhi—compounded by the suspension of metro services and the closure of Central Park—led to an additional loss of approximately ₹1,000 crore. The organization notes that these disruptions have affected everything from customer footfall in markets to the supply of goods.

Over 700 markets in Delhi affected

According to the CTI, the persistent protests have impacted business in more than 700 markets across Delhi. These include major commercial hubs such as Sadar Bazar, Chandni Chowk, Kashmiri Gate, Chawri Bazar, Bhagirath Palace, Gandhi Nagar, Khari Baoli, Karol Bagh, Lajpat Rai Market, and Connaught Place.

The month of October is crucial for traders, as shopping activity intensifies during the period spanning from Navratri to Diwali. During this time, there is a surge in demand for items such as clothing, electronics, decorative goods, gifts, and other products associated with the festive season. However, the CTI states that protests and road restrictions are preventing customers from reaching markets, which has negatively impacted sales during the festive season.

Which sectors have suffered the most?

According to data released by the CTI, the retail sector has borne the brunt of the losses. Other affected areas include wholesale trade, the hotel and restaurant industry, the transport sector, and daily-wage workers.

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The organization reports that wholesale markets have also been hit. It notes a decline in the number of buyers arriving from areas such as Sonipat, Panipat, Gurugram, Faridabad, Noida, Ghaziabad, and parts of Rajasthan. Furthermore, traffic congestion and disruptions to movement have hindered the supply of goods.

Impact on hotels, restaurants, and transport

The CTI notes that protests and movement restrictions have affected businesses such as hotels, restaurants, cinema halls, salons, gyms, and clubs. The organization reports that many establishments have faced booking cancellations and a noticeable drop in evening footfall.

Meanwhile, the closure of metro stations, the rerouting of buses, and severe traffic congestion have taken a toll on the earnings of auto-rickshaw, taxi, and e-rickshaw drivers. The transport sector has also faced delays in the movement of goods, with trucks and tempos getting stuck in traffic. Additionally, the daily earnings of laborers involved in loading and unloading, artisans, sales personnel, and street vendors have been adversely affected.

What will the total loss be by Diwali?

CTI Chairman Brijesh Goyal stated that the period encompassing Navratri, Ramlila, and Diwali represents one of the most critical business phases of the year for traders. If the ongoing protests and road restrictions persist, businesses could face even greater losses.

The organization has expressed concern that if the current situation continues, the total losses could exceed ₹10,000 crore by the time Diwali arrives.

Demand for Relief from the Government

The CTI (Chamber of Trade and Industry) has requested the government to impose a ban on protests and demonstrations in Central Delhi, New Delhi, and the Lutyens' zone until Diwali. The organization has also suggested designating permanent locations for protests in areas such as Burari, Rohini, and Dwarka. Furthermore, they have called for a relief package for traders, as well as concessions on electricity and water bills and GST. The CTI has also appealed to the police administration to focus on ensuring security and the smooth conduct of business in the markets, rather than pressuring shopkeepers to close their shops.