Mumbai: The Maharashtra government's recent decision to permit businesses to operate all night long everyday has drawn a mixed response from business associations. While several industry leaders have welcomed the move as a progressive step towards making Mumbai a global city, others have expressed concerns about implementation challenges, increased expenditure and safety concerns.
The new circular, released on Wednesday, allows shops, restaurants, malls, multiplexes, and other commercial establishments, except the one selling or serving alcohol, to operate round the clock without any time restrictions. Multiple business and retail associations have commended the move saying that it will enhance employment, boost the state’s night-time economy, and improve ease of doing business.
Mumbai-based Retailers Association of India (RAI), which was one of the foremost associations demanding permissions for businesses to operate round-the-clock, has welcomed the state's decision. “We have been advocating for this for a long time and we appreciate the government's move to help customers buy when they want and allow retailers to serve at all times,” said Kumar Rajagopalan, founder and chief executive officer of RAI.
Although the circular excluded bars and wine shops from reaping the benefits of operating their business all night long, the hospitality sector has welcomed the decision calling it a landmark move. The industry believes that the decision will boost employment opportunities for the youth and also benefit the state's tourism.
Pradeep Shetty, spokesperson of Hotel and Restaurant Association Western India (HRAWI), said, “It’s a landmark decision and will augur well for business and economy and a step forward to making Mumbai a true global city. We applaud and welcome this govt move which aligns perfectly with the vision of Viksit Bharat 2047. Also this move will create enormous opportunities in employment for the local communities and tremendously help the state to augment its tourism offerings.”
However, not all associations are fully on board. Several have raised red flags about the practical aspects of implementing the policy. Concerns are raised about women employees’ safety during late-night shifts, and uncertainty about benefits to small retail traders. They believe that this move will only benefit specific business hubs like malls or airports and would not bring any change for the small retailers.
Vijay Shetty, a Chembur-based hotelier, said, “In my opinion, this is not a very feasible idea in totality as it won't generate business to many as the overheads will go up. Except for some strategic places like airports or business hubs that continue to remain open 24 hrs and have footfall, this does not make sense elsewhere as your operational cost goes up.”
A few associations highlighted that not all the sectors will benefit from the decision. They believe that businesses like restaurants, movie theatres and other places of entertainment will only benefit from it whereas traditional businesses of essential items or luxury goods will not witness any change.
Deepak Devrukhkar, secretary of Dadar Vyapari Sangh, said, “The concept of shops operating round the clock is not practical since there needs to be enough security infrastructure in place to avert any theft or shoplifting attempts in the dark. Also, not every business benefits out of this practice as nobody will step outside in the dark of night to buy garments. Even in the US, all supermarkets close down before midnight.”
The same was the reaction from the bullions association, which believes that it will be unsafe to keep small jewellery shops open all night. Kumar Jain, spokesperson of Bombay Bullions Association said, “It is commendable that the government is working on allowing people to work more and earn more. However, this step will benefit a very limited number of sectors and will have negligible positive outcomes for the gems and jewellery businesses. Jewellery shops in malls might see some footfall at night but for individual retail shops, it's dangerous to keep the shutters up all night.
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