EFFECTS OF COVID 19
Coronavirus pandemic has significantly disrupted various sectors in India including education, tourism, oil and gas, automobiles, construction, aviation, agriculture, retail, etc. We can’t ignore that hardly a sector would remain unaffected by the crisis. The impact may be more or less.
The market have no Liquidity and the cost of borrowing in real terms will jump upwards. This is despite central banks’ efforts to reduce interest rates. Banks and financial institutions will be under immense pressure as the fear of NPAs, insolvency and bankruptcies. Now the government will focus on meeting hyper demand for essential goods while non-essential businesses will focus on recovering their receivables/outstanding money due from debtors. New strategic alliances or business partnerships will not emerge during this period. Coronavirus affects India’s GDP very badly.
ADVERSE EFFECTS OF COVID 19
Following are the sectors which affected adversely :
EDUCATION SECTOR :-
As we know that due to coronavirus pandemic the state governments across the country temporarily started shutting down schools and colleges. As per the present situation, there is an uncertainty when schools and colleges will reopen. No doubt, this is the crucial time for education sector because entrance tests of several universities and competitive examinations are held during this period. Along with them how can we forget about board examinations, nursery school admissions, etc?
The immediate solution of coronavirus is necessary or if like these days pass then closure of schools and colleges does not even have short term impact in India but can even cause far-reaching economic and societal consequences.
Apparel & Textile :-
This sector will get hit adversely due to poor labour supply, unavailability and shortage of raw material, working capital constraints and very low demand. Because people don’t want to go market to purchase anything. Low Purchasing power of customers adversely affects the economy.
Auto sector :-
This sector includes automobiles and auto parts. And these sectors also facing challenges because of shut down of transportation. As shut down of transportation no automobile or auto parts in demand.
Aviation & tourism :-
this is the sector which is going down without government intervention because people don’t want to travel in India or outside India. As people will travel for their leisure but now its convert into essential work travel. This sector affects India’s GDP very badly.
Shipping and Non-Food Retail :-
95%(approx) of non-food retail sectors are closed under lockdown because government only allow food sector. Non-food retail chains and global shipping businesses will find this 12-month period very challenging. Global shipping business also closed because dealing with other countries are not allowed. These affects economy very badly.
Building & Construction :-
Construction and building line business mostly depend on borrowing money, hence will face the dual challenges of high-interest payments and lack of sales. Because of this labour class worker also facing non employment and lack of money.
