New Delhi, Jan 8 (IANS): Increase in Covid cases along with imposition of various restrictions by different states have had an adverse impact on business and economic activities across the country, the Confederation of All India Traders (CAIT) said on Saturday.

According to the CAIT, the situation has led "business of various verticals of goods" to go down by an average of 45 per cent in the last 10 days.

The Confederation also urged the Central government and the chief ministers to take all possible steps to prevent further Covid spread.

Besides, it cited the "double whammy" of lower intra-regional trade due to the restrictions and subdued local buyers' sentiments.

"The main reason for this decline is the panic among the people due to the third wave of Corona," the CAIT said.

"Reluctant mood of traders to come to the distribution centres from neighbouring cities, money crunch, large sums of money getting stuck in credit and imposition of various Covid restrictions without consulting the traders are some of the factors that have hit the businesses," it said.

The CAIT also expects a major business decline during the wedding season.

"During the wedding season, which will start on the day of Makar Sankranti on January 14 and go on for two-and-a-half months, business of about Rs 4 lakh crore was expected," it said.

"But due to the various restrictions imposed by the state governments across the country, a steep drop is seen in the business of nearly about 75 per cent," it added.

"Now it is estimated that in the next two-and-a-half months, there is a possibility of about Rs 1.25 lakh crore only in this business vertical," it added.