Impact of COVID-19 on Indian Economy

How COVID 19 is effecting the Indian Economy, Industries & Businesses badly?

The COVID-19 epidemic has impacted everyone in any way. All the impacted countries are facing huge losses. The lockdowns are still active, and we don’t know when they are going over. But, the thing which we all know is that we have to face various unfavorable circumstances of this epidemic, once everything gets backs to normal.

When it comes to businesses, every industry is affected by this COVID-19 epidemic. The continuing lockdown has decreased the demands of consumer goods as well as capital goods. Businesses are not working with their full capacity thus affecting the supply and consumers are lacking income resources thus demand is also decreased.

As per a survey from McKinsey and Company, most of the business industries are seeing huge output changes. A survey from Willis Towers Watson, 57% of Indian businesses expects to recover from the COVID effect in the next 6 months and 46% of Indian Organisations expect its effects to lasts for 12 months.

So, let’s uncover some real facts and understand how Indian companies are going to get affected because of COVID-19.

Everyone is getting impacting, but some of the most harmed industries with the highest output changes are as follows:

•    Hotels and Airlines

•    Real-Estate and Construction

•    Textiles

•    Metal industries

•    Oil, Gas, and Power

•    Agriculture

•    Automotive

•    Freight and Logistics

Which Industry is most likely to be hit hardest by this CORONA VIRUS CRISIS in India? 

Give your opinion here.

There are several other industries that are seeing huge losses due to this epidemic. The report also says that the small-scale industries will see bigger impacts. Besides, the industries which were already struggling, such as Logistics, Real-Estate, and Automobile, may find it hard to regrow if the lockdown continues.

However, any support from the government may help most of these industries to survive.

What researches are highlighting?

A survey was done by industry body FCCI took responses from several companies in the country, and it revealed extensive reports on several economic aspects.

As per the survey, 60 percent of the total companies have stopped or postponed fund-raising campaigns for the next 6 to 12 months.

If we talk about the overall economy, the COVID-19 epidemic may not impact a lot because the consumption is reduced along with the production. So, once things get back to the track, everything will start to get balanced.

In fact, the global economy is impacted due to this epidemic. Also, as per the WHO’s assessment, India’s GDP may grow by 1.5 to 2.8 percent after the epidemic.

What will happen next?

As per the new lockdown guidelines from May 2020, agricultural processes, including coffee, tea, farms, dairies, are reopened.

Also, a large number of industries, such as automobiles, food, electronics, etc. are now allowed to work on a restricted basis. The industries are advised to take care of social distancing while performing any industry task inside the premises.

However, lots of businesses are still open, and most of the open one can’t work with their full strengths.

Technology is supporting all the businesses by providing facilitating the remote working. In this situation, people are now becoming more live to accept the benefits of adding technology to business.

But, as time is passing by and the situations are getting under control, the businesses are getting back to their earlier positions.

However, the maximum outputs and demands can’t be achieved until all the restrictions are removed by the government.

What should be done to make businesses grow again?

To let the businesses make their backs straight again after this epidemic, the government has to take steps that may help them in a positive manner. This can be done by increasing the demands, and the demands will increase only if the employments are increased.

However, this is a long approach to improve our economy.

But, for this time period, it is important to give relaxations to taxes and loans. The businesses which are under economic pressures must be encouraged to reopen again and work without the financial pressures. The banks must have to contribute along with the government in order to promote the most stressed businesses.

Businesses would be required to focus on the best digital marketing services to increase the demand or their products and services in the country and overseas.
 

Conclusion
New business opportunities must be introduced, and we must try to protect the existing ones and make their situations better. Also, during these tough times, the businesses, employees, investors, government, and banks should work hard to make things better as soon as possible. Otherwise, ruined business industries may get our country several years back from its prosperity.