Dimapur, June 20 (MExN): The Business Association of Nagas (BAN) wrote to Nagaland Chief Minister Neiphiu Rio underlining the plight of the Naga business community in the backdrop of the extended COVID-19 induced lockdowns.
The BAN in its letter acknowledged the steps taken by the state government to prevent the spread of the virus.
“Nagaland, to some extent, as compared to other states has been able to contain the spread and the credit goes to the government for steps like lockdowns and other forms of restrictions,” it stated.
However, it also highlighted the plight of businesses, especially those run by Nagas – who are mostly first generation businessmen. It said that while the business community has been fully cooperating with whatever restrictions that have been imposed during the lockdowns, “Many businesses are barely surviving—we have to pay rent, salaries and repay our loan EMIs.”
The association stated that the business community is not only a major employer for people who cannot find government jobs but also helps in revenue generation for the state through GSTs. However, in the current scenario where there are talks going on in the medical community that a third wave is due, it expressed concern that the “tsunami of waves created by the pandemic will wash away the businesses,” who are already generating very less profits to sustain themselves.
Stating that stable business community is an asset for any state, the BAN emphasised the need for “carefully thought out policies and measures” to alleviate the plight of businesses.
In this context, the BAN put up some measures for the government to consider in order to and “give the business community some much needed oxygen to survive the pandemic.”
Stating that there is “apathy” among banks in the state towards extending financial assistance (loans) citing previous Non-Performing Assets, the BAN underscored that genuine Naga entrepreneurs who need financial assistance to sustain their businesses and grow usually end up having a frustrating time visiting banks. Given the extra ordinary situation, the state government has to discuss with banks in the state and device a modality to extend loans to genuine Naga entrepreneurs who pay regular taxes and file returns, it stated.
It also pointed out that a functional industrial policy is nonexistent in the state and doing business is not easy, as is evident from the state’s ‘ease of doing business’ national rankings. “Naga entrepreneurs today do not get much government assistance – be it to start new ventures or scale up existing businesses. As we are mostly first generation businessmen some hand holding and support will be of great help,” the BAN stated.
Further, it stated that since the pandemic started, a lot of focus has been on start-ups and rehabilitating returnees. However, it reminded the State government that existing businesses in the state are the main taxpayers who employ thousands of people, while adding that existing businesses who are struggling need to be rehabilitated first.
In terms of interventions through various government departments, the BAN emphasised that the government departments should make small achievable plans in coordination with the business community. “Smaller plans and goals are easier to achieve and can be measured. With the experience gained from them, the government can make bigger plans,” it stated.
The BAN meanwhile assured that it would be ready to discuss, share its expertise and help the state government to make decisions for the welfare of the business community.
