Besides the impact on human lives, the COVID-19 pandemic has taken a gigantic toll on the Indian Economy as well. The businesses across the globe are operating in dismay of the forthcoming breakdown of the financial markets. The biggest question that exists is ‘Will things ever go back to normal’? Well, we all have been pondering over this question for quite a while now and also intend to know what fundamental changes will take place in different sectors and how will the functionality of the economy be affected further.
To be true, the prognosis seems rather gloomy. The current scenario clubbed with stagnant economic growth in a developing country like India has led to a tremendous volatile market condition. To get a deep insight into how COVID-19 is going to affect the Indian Economic Growth take a read below. In terms of risk on the account of COVID-19 pandemic, we’ve segregated different sectors on the basis of High-Impact, Medium-impact, and Low-Impact sectors.
- Aviation & Tourism
The aviation and tourism sectors have been adversely affected even without much government intervention as people will now opt to travel only for essential needs apart from usual leisure travel.
- Restaurants & Hotels
The hospitality sector has been hit particularly hard because of the restrictions in terms of gathering size, maintaining social distancing, and other necessary precautionary measures.
- Apparel & textile
The textile and apparel industry has also been extremely affected owing to many reasons like disruption in labor supply, unavailability of raw material, constraints on working capital, and the restricted demand because of a significant drop in the movement of people and the buying ability.
Automobile Sector comes under the medium impact categories in terms of business affected by the outbreak of coronavirus. The sector is expected to face challenges on account of lack of demand, global recession, and definitely falling income levels.
- Real Estates
These businesses are normally leveraged and hence have faced dual challenges both of high-interest payments as well as lack of sales.
- Digital & Internet Economy
Digital Economy has been least affected by the COVID-19 pandemic as the people resorted to online mediums to spread awareness and also sell their products. Hence, online-based products & services have found new takers amid the pandemic. With everything turning digital, there has been a sudden spike in the businesses going digital. From studying online to buying essentials/groceries online, the demand has been more than ever.
Panic buying by consumers during the lockdown period benefitted the FMCG & Retail Sector immensely. Grocery Items, milk, and hygiene essentials witnessed a surge in the demand.
The pharmaceutical industry has been witnessing growth for the past couple of months now as there has been a significant increase in the demand for essential medicines and safety equipments.
The recovery of the economy will be gradual and it might take a few years for normalcy to come back in the economic growth. While one one hand as a whole the overall economy has been hit hard, but on the brighter side, there have been few sectors like the Pharmaceuticals, FMCG & Retail, and Digital & Internet Economy that have observed immense growth.
The only way out of this commotion is its time we understand that ‘It is the moment to reset now’. We have the time to rethink and fix the challenges coming our way by being mindful of the current situation and eventually we will see things getting back to their previous form with the course of time.