Impact of coronavirus on Indian Economy

Impact of coronavirus on Indian Economy

Well, almost 90 percent of India had lockdown due to the Novel COVID 19, and it would leave a significant impact in the coming years. Now, we are in the open face of the CoronaVirus lockdown. Coronavirus first case reported in Wuhan, China on 31 December 2019. Coronavirus (CoV) is a large family of viruses that causes illness. It ranges from the common cold to more severe diseases like Middle East Respiratory Syndrome (MERS-CoV) and Severe Acute Respiratory Syndrome (SARS-CoV). The novel coronavirus is a new strain of the virus that has not been identified in humans so far. To find out the vaccine of coronavirus world’s leading organizations like WHO, Global Health Experts, and Scientists working together.

Coronavirus impact on Indian Economy:-

The Gross domestic product of the Nation has diminished with the spread of Coronavirus. The Sensex and other market barometers are showing the same trends of market downfall. In every sector of the economy, there is a huge downfall and employment by jobs cut and less demand in the economy. The impact of coronavirus has impacted all the sectors of the economy, and we discussed some of the essential sectors described below.

Education Sector - Most schools/universities have promoted students to the next class without an exam. Due to Coronavirus, students are not able to come outside the home. They are trying to study at home.

The transport industry in India is the worst affected sector by COVID-19. The goods cannot reach from one place to another. Transport Company has been affected by coronavirus very much and the transport industry is completely closed. Due to this, the industry has lost thousands, which they cannot compensate for even after 2-3 months. The transport industry is not in a position to pay salaries to its employees. The logistic part of the transport industry is working partially, so the delivery of raw material and products not done on time.

In India, the aviation sector is the most and worst affected sector by the Covid-19. Airfares have also come under pressure due to nearly 30 percent drop in booking to virus affected destinations. According to the survey, domestic travel has decreased compared to last year's travel. Moreover, it is likely to hit 29 lakhs jobs in Indian aviation. It also may cause high losses due to coronavirus.

CoronaVirus is not impacting only one sector; it affects several sectors and due this pandemic Indian Economy has demolished. The health sector is also facing significant issues.

1. The health care industry has been feeling a Great loss due to COVID-19. The private hospitals, as well as patients, are suffering a lot due to Coronavirus because private hospitals are not taking general high fever patients.

2  The workload of Govt hospitals has increased because general patients have to go there for the check.

3.  Due to the lockdown period work of nursing staff is also increasing. They have to pay more attention to the patient

5.  Lack of staff, many staff getting Afraid and refusing to go back to the hospital or their family.

6.  Private health care losses upto 24000 crores.

7. India has been investing heavily over the past month in the additional workforce, equipment, consumables and other resources to ensure 100% preparedness for safety in the healthcare facilities and eventual treatment of patients if needed.

8. Private hospitals are giving full support to the government by providing quarantine wards, medicines, isolation wards.

9. There is a significant fall in OPD patients.

The nationwide lockdown, due to the COVID-19 pandemic, has created a problematic situation. Since the lockdown period, millions of workers have migrated to their hometowns due to lack of work. Employers are also worried about their work. The residential sectors which already had the concern of weak demand will find it difficult to launch new projects. Even when the lockdown is lifted, kick-starting operations will be extremely difficult for all sectors. The real estate sector has faced more losses due to the outbreak of this pandemic. The rental income is also decreased. The vacant house is more available but no tenant available to even occupied rent is also decreased.

In India, the IT industry is the most affected. Reduced technology revenue of the IT sector reduces 2-7%. The pandemic lowered its growth forecast to 3-6% from 6-8% from the COVID-19. The spread of coronavirus has pushed the global economy.

Because of COVID-19 many industries sank. On the other hand a lot of industries' gone into a boom period. Due to COVID-19 online business growing faster and taking many opportunities. E-commerce provides a safe shopping experience. Online businesses like Amazon, big basket, Flipkart etc. are growing very fast because they are providing door to door delivery of groceries, medicines and other essential commodities to consumers keeping the rules of social distancing.

The automobile sector suffered many losses during this period. Due to this demand as well as supply both decreases. Sales of Hyundai's and Toyota's  and Maruti Suzuki declined by 45% and 41%. Due to this, exports and imports of goods also decrease. Vehicle production in India is likely to contract by 8.3% in 2020, following as estimated by a 13.2% decline in 2019. Like Ola and Uber are also unable to expand beyond large metros. Start-ups such as Vogo and Yulu are  focusing on bike rental model

In India, the Tourism sector is affected by COVID-19. The travel and tourism industry in India has been a significant contributor to the country's GDP. The sector even generates a large employment base. The COVID -19 pandemic has had a significant impact on the tourism industry due to the resulting travel restrictions as well as a slump in demand among travelers.  The Indian tourism and hospitality industry is expecting a potential job loss of around 38 million.  Coronavirus deals a body blow to global tourism. Most of the holiday booking has also canceled thereby impacted the losses in business. The tourism industry has been massively affected by the spread of Coronavirus.

In India, the Retail Sector shutting down of malls and shops has severely hurt the business for all retailers. Moreover, this could lead to significant job losses. Reports indicate severe disruption for consumer/small companies too with a sharp 50%+ drop in sales during the ongoing lockdown. Retail industries will take at least a year to recover their losses from COVID-19. According to a survey done by the Retail Association of India (RAI), 20-25% of the industries may need funds to stay afloat, and 25% of the jobs in the retail industry are likely to get impacted. According to the CEO of RAI, only 7-8% of the modern retail trade is functioning.

Pharmaceuticals Industry: Despite being one of the top formulations of drug exporters in the world, the pharma industry of India relies heavily on import as of bulk drugs. Due to the coronavirus outbreak, demand increases but the shortage of labor and raw material could not complete the orders on time.

Textiles Industry: Due to the coronavirus outbreak, several garments/textile factories in China have halted operations that in turn affecting the exports of fabric, yarn and other raw materials from India.

Electronics Industry: The major supplier is China in electronics being a final product or raw material used in the electronic industry. India’s electronic industry may face supply disruptions, production, reduction impact on product prices due to heavy dependence on electronics component supply directly or indirectly and local manufacturing.

Conclusion:-

The whole world attempting to mitigate the health risks of COVID-19 with the economic risks and necessary measures needed will take to improve it. However, all economies are facing a crisis period. At this, all the economy needs to make a self-reliant economy and want to boost their economies. Many Countries announced financial packages for each sector, although it is not sufficient to take out from the crises. We need to use the domestic product so that the industry can establish a new platform for Indian Industries so we can create opportunities for the locals to make Atmanirbhar Bharat(Self Reliant Bharat). It is time to give boost the vocal the local.