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Restaurants to jewellery: Formal economy gains, small players lose in Covid

What has been an irreversible trend for a few years - the gradual formalisation of the economy - has received sudden acceleration with Covid-19

A waiter carries disposable plates for serving food to customers at the restaurant of Peerless Inn hotel after it re-opened, during the fifth phase of nationwide lockdown, in Kolkata, Wednesday, June 10, 2020. (PTI)
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A waiter carries disposable plates for serving food to customers at the restaurant of Peerless Inn hotel after it re-opened, during the fifth phase of nationwide lockdown, in Kolkata, Wednesday, June 10, 2020. (PTI)

Surajeet Das GuptaRajesh BhayaniViveat Susan PintoArnab Dutta New Delhi/Mumbai
What has been an irreversible trend for a few years — the gradual formalisation of the economy — has received sudden acceleration with Covid-19. 

From jewellery, paints, biscuits, beverages, and staples to restaurants, the organised sector is racing ahead by gaining market share at the expense of poorer, smaller, unorganised players.

The organised sector enjoys scale as well as healthier balance sheets relative to the unorganised sector, which has faced the brunt of the lockdown. Many businesses have closed down. Further, consumers concerned about safety and hygiene have switched to established brands. CRISIL estimates that the share of the organised

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First Published: Jun 15 2020 | 1:07 AM IST

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