Impact of Covid-19 in India

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Impact of Covid-19 in India

India was already suffering from economic slowdown since couple of years due to USA-China trade war and global economic saturation. It got shrunk more as we went into three months complete lockdown from the month of March 2020. It completely disturbed our economy as well as micro economy which mean our daily house budget. Almost all sectors went down to shut their working operations which showcased a sharp fall in demand and exports with some notable exceptions where high growth was observed.

To understand the effect, we’ll have to go through different sectors independently. Let’s begin with the discussion:

Travel & Tourism

Aviation sector in travel industry got a major hit with tourism sector as they both contribute to our GDP about 2.4% and 9.2% respectively. Tourism sector served approximately 43 million people in FY 18-19. They were the first industry who went down with their operations as they both could have been a major reason for transmission of the virus. It not just contributes in GDP but also provides employment for millions. Sudden shutdown impacted millions of families.

Education Sector

Education sector could be divided in to two parts; as on one side education institutes suffered as well as students and their parents initially; on the other hand edtech startups got an opportunity to serve in the industry when it was an unprecedented event in progress which was not sure how long it will go.

That made an innovative way of learning system come into operations and allows our education system to transform. Well, the event of pandemic is still ongoing and edtech startups are contributing to keep the learning flow go on.

Pharmaceuticals

The Pharma industry was one of the most busiest and crucial sector while we were in complete lockdown. It was the sector which was helping fight against the virus in order to keep our health safe and healthy. But, it achieved some remarkable milestones in the global pharmaceuticals industry by manufacturing PPE kits, exporting Hydroxychloroquine to the world, especially to the USA, UK, Canada, and the Middle-East.

India also became one of the major manufacturers of Covid-19 vaccine as world trusted India’s pharma sector as compared to China who exported the virus. One of the world’s largest vaccine manufacturer Serum Institue was leading the charge in vaccine manufacturing ahead of BharatBiotech.

FoodTech Industry

I was able to gather some information about this sector’s performance due to some contacts in this industry. Some of my friends, serving in this industry told that, demand for packed food was not that high after re-opening from lockdown. Many families were not confident about consuming packed food and preferred home cooked food. Later in February 2021, it was observed that demand for packed food and snacks were regaining the momentum. Now it is reaching near to pre-pandemic level.

It will take few more months to reach pre-pandemic level and surpass it. This will get back on track as soon as offices and educational institutes get green signal to re-open.

The New Normal

If we view this pandemic and the slowdown, it is evident that the current downturn is fundamentally different from recession. Sudden fall in demand and increased unemployment is going to alter the business cycle. From bakery business to clothing, every MSME sector is hoping for the revival within few months as government is pushing Make In India movement to create job opportunities in the nation with introduction to PLI (Product Linked Incentive) scheme in order to counter China’s monopoly as a manufacturing hub for the world.

It will be a watch out game for India, as we are heading towards new normal as we are getting Vaccines at the highest pace.

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