Asserting that a large number of small and medium businesses will shut down after the moratorium period, Congress leader Rahul Gandhi on Thursday said the country will soon not be able to provide employment to its youth for the first time in its history.
Gandhi, in a virtual press conference, said the unorganised sector is responsible for 90 per cent employment in the country and asserted that many of them will go out of business soon after the moratorium period, creating an employment crisis.
“The unorganised sector is responsible for 90 per cent of employment in the country. Who are these people? These are small and medium businesses, farmers. Narendra Modi has destroyed this system now. Now you will see, as soon as the moratorium period ends, companies will fall one after another,” Gandhi said.
He said several small and medium businesses will be wiped out and added that many of them are going out of business already.
“What will happen in the country then? The country will not be able to give employment to its people. India will not be able to provide employment to its youth in the coming time. This will happen for the first time in the history of our country. This has never happened in the last 70 years,” Gandhi said.
“Media made fun of me when I warned the country that there will be heavy loss due to COVID-19. Today, I am saying our country won’t be able to give jobs. If you don’t agree, then wait for six to seven months. You will see,” he added.
In the wake of the COVID-19 pandemic, the Reserve Bank of India had announced a loan moratorium to de-stress the country’s financial ecosystem allowing borrowers to defer or postpone repayment of all standard loans outstanding with commercial banks and non-banking financial companies till the end of August.
This comes as the pandemic has already adversely impacted several businesses as many of them had to close shops for an extended period of time to prevent the spread of the coronavirus. Notably, the central government has also announced a Rs 20 lakh crore economic package to provide the necessary stimulus to the economy.