Thread by @thekaipullai

Once this lockdown is over

50% of the small business I know, are going to start off with a negative net worth.

30% of the small outlets in the hardware and electrical outlets will go out of business.

15% of Kirana and other grocery outlets will shut down permanently.

If the govt doesn't waive off interests and penalties and announce a true moratorium

Almost an entire year of Small Business Profits are going to get wiped out, just to pay the amount due to the banks.

Their reserves are almost depleted in paying salaries, with zero business.

Almost 30% of trade receivables are going to go bad and will have to be written off. This will impact payment cycles to the bank, who will impose more penalties.

Unless the FM steps in now, we are looking at a financial catastrophe, which will take 3 years to recover.

Here's the catch. Almost half of our manufacturing companies, rely on these small enterprises to distribute their products.

If they go down, the companies go down as well.

And most of our manufacturing is dependent on these companies as well. So they get hit too.

The entire service industry, IT and financial services, who are dependent on the previous two, go off too.

The salaries start getting reduced and job losses begin. Tax revenue falls drastically.

The ripple effect will be devastating.

But what do babus care? They get their DA