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IMPACT OF COVID-19 ON STREET
VENDORS
TABLE OF CONTENTS
1-INTRODUCTION
2-WHAT IS INFORMAL ECONOMY?
3-IMPACT OF COVID-19 ON STREET VENDORS
3.1-NEGATIVE IMPACTS
3.2-POSITIVE IMPACTS
4-RESEARCH METHODOLOGY
5-SURVEY ANALYSIS-1(DIRECT SURVEYS)
6-SURVEY ANALYSIS-2(SURVEYS FROM TEXT)
7- MARKET DYNAMICS IN TIMES OF COVID-19
8-ECONOMIC AND NON-ECONOMIC IMPACTS
9-CONCLUSION
INTRODUCTION
 The COVID-19 pandemic has taken the country by storm. All of
its economic activities have suddenly come to a halt and the
econonomy has contracted largely.
 The economies of more than 100-plus countries have been
destroyed out of which some of them have asked for monetary
help from the IMF.
 Businesses across the world comprising hospitality,
entertainment,aviation etc. have seen a major negative impact.
 Various sporting events such as IPL and the Olympics have
been postponed indefinitely.
 The pandemic has also disrupted the functioning of various
online giants such as the major e-commerce platforms like
Amazon,Flipkart,Myntra etc.
 The Indian Economy contracted by almost an
unprecedented 23.9% to a plunging technical
recession,the trajectory of India’s economy saw a steep
decline in 2020.
 Barring agriculture,all other major indicators of growth
in the economy were massively impacted.The worst
affected sectors were massively impacted.
 The worst affected sectors were
construction,trade,hotels,manufacturing and mining.
 It is relevant to note that these sectors that generate the
maximum new jobs in the country.
 According to Nomura India Business Resumption Index
economic activity fell from 82.9 on 22 March to 44.7 on
26 April.
What is informal economy?
 An informal economy(informal sector or grey economy) is
the part of any economy that is neither taxed nor
monitored by any form of government.
 It provides critical economic opportunities for the poor and
has been expanding since the 1960s.
 The informal sector consists of enterprises which are
labour intensive.
 Low-skilled labourers who are desperate enough to work
for miserly wages in order to meet their substance
requirements largely contribute the labour force of
unorganised economic activities.
 The informal sector despite being a huge contributor to
India’s GDP,is often neglected when it comes to supportive
policies especially in times of crises.
 It is basically responsible for the country’s developmental
progress since large masses of workers who would
otherwise get unemployed are getting work.
 According to a study by Credit Suisse in 2018,the cause of
social divide is due to the fact that the richest 10% Indians
own about 80% of the country’s wealth while the less
privileged only have less than 5%.
 It obstructs the eradication of poverty,therefore leads to a
uptick in various forms of crimes every year.
The impacts of COVID-19 on street
vendors
NEGATIVE IMPACTS
 Fruits and vegetable vendors,owing to massive losses to
livelihood,tried to venture out to sell after a couple of days,but
faced strict police harrasment.
 The risk of doing business has gone up significantly,owing to ill-
hygenic practices in the times of COVID-19.
 The vendors do not have access to wholesale markets and
suppliers thus having to spend more on travel costs due to travel
resrtictions in place in the city.
 The demand for buying groceries physically from vendors went
down drastically owing to ill-hygenic conditions and fear of
COVID-19.
 The increased fear of the spread of the virus led consumers
to buy groceries from digital outlets such as
Grofers,BigBasket etc.
 The stimulus package introduced by the government has
not been so helpful for the vendors,since the governmnet
has provided for a credit loan to provide an initial working
capital of Rs.10000/-
 Instead if it would have been a direct income benefit or a
cash grant the results would have been better.
 The pandemic has been very harsh on the informal workers
who have exhausted their capital and earnings.
POSITIVE IMPACTS OF COVID-19
 Vendors were made aware of the hygenic and proper
sanitization practices they should follow during the
times of COVID-19.
 After the lockdown was eased,they knew in order to
thrive they ought to follow sanitization and social-
distancing norms.
 It somehow improved the hygenic practices which
were not followed before the pandemic hit.
 People of India were clear about the fact that although the
organised sector rules,the informal economy is relatively as
important for their survival since we are so dependent
upon it.
 Consumers who were earlier hesitant to follow hygenic
practices after buying groceries were now considering
hand-washing and sanitization practices.
 The informal economy,although an unorganised sector was
considered important by the government since people were
so dependent on them and also provided jobs to millions of
people.
RESEARCH METHODOLOGY
 Area covered:-Ispat Market and Ispat Haat(also known as
Jharkand Market) of Rourkela,Odisha
 Area of Study(types of vendors covered):-Fast food
vendors,Chaat vendors,Pani-Puri vendors,fresh vegetables
and fruit vendors,cloth vendors,shoe vendors and mobile
accesory vendors.
 Number of respondents covered:-34
 Primary Survey:-Direct survey through questionnares to
vendors
 Secondary survey:-Surveys obtained through texts and
internet
SURVEY ANALYSIS-1(DIRECT
SURVEY)
 Gender
 Vendors reactions translated to English
NUMBER OF RESPONDENTS
MALE 57%
FEMALE 43%
SURVEY RESPONSES PERCENTAGE
BREAKING/WITHDRAWAL OF FD(SAVINGS) 16%
CUTTING DOWN ON CHILD’S EDUCATION DUE TO HIGH FEES 38%
CHILDREN WORKING ALONG WITH THEM HOPING EXTRA SALES 18%
FORCED TO RELY ON SELLING ESSENTIAL GOODS(e.g. FRUITS AND
VEGETABLES)
13%
SURVEY RESPONSES PERCENTAGE
INCREASE IN PETTY CRIMES LIKE STEALING FOR SURVIVAL 7%
DOMESTIC ABUSE AND HARASSMENT(BY LADY VENDORS) 8%
EFFECTS POST LOCKDOWN PERIOD
(DIRECT SURVEY-2)
 Vendor responses
NUMBER OF RESPONDENTS
MALE 57%
FEMALE 43%
SURVEY RESPONSES PERCENTAGE
EASING OF CURBS LEAD TO SLIGHT INCREASE
IN SALES
24%
VENDORS WERE TAUGHT HOW TO OPERATE POST
LOCKDOWN ADHERING TO SOCIAL DISTANCING AND
SANITIZATION NORMS
21%
CIRCLULAR MARKS WITH 6 FEET DISTANCE WERE MADE
AS A PREVENTIVE MEASURE
31%
VENDORS HAD TO BE EXTRA-CAUTIOUS WHILE
RETURNING HOMES SO THAT FAMILY MEMBERS REMAIN
SAFE
24%
SECONDARY SURVEY
 Street vendors have been severely hit across states.Markets being
shut down means they have no income and so they have been
mobile vendors.
 The Indian governmnet launched Rs.5000 crore special micro-
credit facility for nearly 50 lakh vendors.
 This credit linkage facility would provide an initial working
capital of Rs. 10000.
 Schneider and Enste(2003) estimate that the informal sector
represents 10-20% of global output of developing countries.
 The figures reported by the International Labour organisation
are the same magnitude-48% in non-agricultural employment
in North Africa,51% in Latin America,65% in Asia,and 72%
in Sub-Saharan Africa.
 The proportions of regular/wage salaried earners
accounted for 12.81% of rural households.In urban
India,the corresponding figures were 37.57%,12.68% and
41.66%
Market dynamics during COVID-19
CHANGES IN MARKET LOCATION
 New changes have been introduced by the governmnt
regarding market place locations in order to abide by social-
distancing measures.
 Public places such as school playgrounds and parks had been
converted into makeshift market places for vendors.
CHANGES IN NUMBER OF VENDORS
 The number of vendors had increased due to shift in
occupations.Auto-rickshaw drivers and daily-wage labourers
were selling fruits and vegetables in order to earn a living.
SECURITY CONCERNS
 Vendors were concerned that crime rates might increase as
the sudden loss of money may drive people to commit petty
crimes.
ECONOMIC AND NON-ECONOMIC
IMPACTS
ECONOMIC IMPACTS
 A world which buzzed with activities has fallen silent and
all resources have been diverted to meeting the never-
experienced befor crises.
 A 2019 joint report from WHO and the World Bank
estimated the impact of such a pandemic at 2.2% to 4.8%
of global GDP.This prediction seems to have come true,as
we see the world getting engulfed by this crisis.
 According to the policy responses by the Individual Labour
Organization(ILO),it was explained that the crisis had
already transformed into an economic and labour market
shock.
NON ECONOMIC IMPACTS
 Hygenic practices like washing of hands and proper
cleaning are being followed by vendors as well as
consumers.
 It was well understood by the government that the
informal/unorganised sector plays a significant role in the
Indian economy.
 Domestic abuse and harrasment reports increased during
this time due to frustration about sources of livelihood.
 Petty crimes such as stealing increased owing to
uncertainty of livelihood for daily-wage/low-income
labourers.
CONCLUSION
 According to International Labour
Organisation(ILO),it is estimated that globally more
than 25 million jobs are at risk due to the COVID-19
outbreak.
 The ILO describes in its report as the worst global
crisis since World War 2.It is estimated that 4 in evey 5
people(81%) of the global workforce of 3.3 billion are
currently affected by lockdown in various countries.
 Most of the world’s poorest and most vulnerable
people live and work in the informal economy.
 The vulnerability of informal workers is strongly
influenced by their social status and their capabilities.
 These capabilities are issues of public intervention in
the fields of education,housing and sanitization.
 Warranted by the magnitude of the current crisis,India
has to ensure a wider reach of amenities to both
impose living and protect livelihoods.
THANK YOU

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Impact of Covid-19 on street vendors

  • 1. IMPACT OF COVID-19 ON STREET VENDORS
  • 2. TABLE OF CONTENTS 1-INTRODUCTION 2-WHAT IS INFORMAL ECONOMY? 3-IMPACT OF COVID-19 ON STREET VENDORS 3.1-NEGATIVE IMPACTS 3.2-POSITIVE IMPACTS 4-RESEARCH METHODOLOGY 5-SURVEY ANALYSIS-1(DIRECT SURVEYS) 6-SURVEY ANALYSIS-2(SURVEYS FROM TEXT) 7- MARKET DYNAMICS IN TIMES OF COVID-19 8-ECONOMIC AND NON-ECONOMIC IMPACTS 9-CONCLUSION
  • 3. INTRODUCTION  The COVID-19 pandemic has taken the country by storm. All of its economic activities have suddenly come to a halt and the econonomy has contracted largely.  The economies of more than 100-plus countries have been destroyed out of which some of them have asked for monetary help from the IMF.  Businesses across the world comprising hospitality, entertainment,aviation etc. have seen a major negative impact.  Various sporting events such as IPL and the Olympics have been postponed indefinitely.  The pandemic has also disrupted the functioning of various online giants such as the major e-commerce platforms like Amazon,Flipkart,Myntra etc.
  • 4.  The Indian Economy contracted by almost an unprecedented 23.9% to a plunging technical recession,the trajectory of India’s economy saw a steep decline in 2020.  Barring agriculture,all other major indicators of growth in the economy were massively impacted.The worst affected sectors were massively impacted.  The worst affected sectors were construction,trade,hotels,manufacturing and mining.  It is relevant to note that these sectors that generate the maximum new jobs in the country.  According to Nomura India Business Resumption Index economic activity fell from 82.9 on 22 March to 44.7 on 26 April.
  • 5. What is informal economy?  An informal economy(informal sector or grey economy) is the part of any economy that is neither taxed nor monitored by any form of government.  It provides critical economic opportunities for the poor and has been expanding since the 1960s.  The informal sector consists of enterprises which are labour intensive.  Low-skilled labourers who are desperate enough to work for miserly wages in order to meet their substance requirements largely contribute the labour force of unorganised economic activities.
  • 6.  The informal sector despite being a huge contributor to India’s GDP,is often neglected when it comes to supportive policies especially in times of crises.  It is basically responsible for the country’s developmental progress since large masses of workers who would otherwise get unemployed are getting work.  According to a study by Credit Suisse in 2018,the cause of social divide is due to the fact that the richest 10% Indians own about 80% of the country’s wealth while the less privileged only have less than 5%.
  • 7.  It obstructs the eradication of poverty,therefore leads to a uptick in various forms of crimes every year.
  • 8. The impacts of COVID-19 on street vendors NEGATIVE IMPACTS  Fruits and vegetable vendors,owing to massive losses to livelihood,tried to venture out to sell after a couple of days,but faced strict police harrasment.  The risk of doing business has gone up significantly,owing to ill- hygenic practices in the times of COVID-19.  The vendors do not have access to wholesale markets and suppliers thus having to spend more on travel costs due to travel resrtictions in place in the city.  The demand for buying groceries physically from vendors went down drastically owing to ill-hygenic conditions and fear of COVID-19.
  • 9.  The increased fear of the spread of the virus led consumers to buy groceries from digital outlets such as Grofers,BigBasket etc.  The stimulus package introduced by the government has not been so helpful for the vendors,since the governmnet has provided for a credit loan to provide an initial working capital of Rs.10000/-  Instead if it would have been a direct income benefit or a cash grant the results would have been better.  The pandemic has been very harsh on the informal workers who have exhausted their capital and earnings.
  • 10.
  • 11. POSITIVE IMPACTS OF COVID-19  Vendors were made aware of the hygenic and proper sanitization practices they should follow during the times of COVID-19.  After the lockdown was eased,they knew in order to thrive they ought to follow sanitization and social- distancing norms.  It somehow improved the hygenic practices which were not followed before the pandemic hit.
  • 12.  People of India were clear about the fact that although the organised sector rules,the informal economy is relatively as important for their survival since we are so dependent upon it.  Consumers who were earlier hesitant to follow hygenic practices after buying groceries were now considering hand-washing and sanitization practices.  The informal economy,although an unorganised sector was considered important by the government since people were so dependent on them and also provided jobs to millions of people.
  • 13.
  • 14. RESEARCH METHODOLOGY  Area covered:-Ispat Market and Ispat Haat(also known as Jharkand Market) of Rourkela,Odisha  Area of Study(types of vendors covered):-Fast food vendors,Chaat vendors,Pani-Puri vendors,fresh vegetables and fruit vendors,cloth vendors,shoe vendors and mobile accesory vendors.  Number of respondents covered:-34  Primary Survey:-Direct survey through questionnares to vendors  Secondary survey:-Surveys obtained through texts and internet
  • 15. SURVEY ANALYSIS-1(DIRECT SURVEY)  Gender  Vendors reactions translated to English NUMBER OF RESPONDENTS MALE 57% FEMALE 43% SURVEY RESPONSES PERCENTAGE BREAKING/WITHDRAWAL OF FD(SAVINGS) 16% CUTTING DOWN ON CHILD’S EDUCATION DUE TO HIGH FEES 38% CHILDREN WORKING ALONG WITH THEM HOPING EXTRA SALES 18% FORCED TO RELY ON SELLING ESSENTIAL GOODS(e.g. FRUITS AND VEGETABLES) 13%
  • 16. SURVEY RESPONSES PERCENTAGE INCREASE IN PETTY CRIMES LIKE STEALING FOR SURVIVAL 7% DOMESTIC ABUSE AND HARASSMENT(BY LADY VENDORS) 8%
  • 17. EFFECTS POST LOCKDOWN PERIOD (DIRECT SURVEY-2)  Vendor responses NUMBER OF RESPONDENTS MALE 57% FEMALE 43% SURVEY RESPONSES PERCENTAGE EASING OF CURBS LEAD TO SLIGHT INCREASE IN SALES 24% VENDORS WERE TAUGHT HOW TO OPERATE POST LOCKDOWN ADHERING TO SOCIAL DISTANCING AND SANITIZATION NORMS 21% CIRCLULAR MARKS WITH 6 FEET DISTANCE WERE MADE AS A PREVENTIVE MEASURE 31% VENDORS HAD TO BE EXTRA-CAUTIOUS WHILE RETURNING HOMES SO THAT FAMILY MEMBERS REMAIN SAFE 24%
  • 18.
  • 19. SECONDARY SURVEY  Street vendors have been severely hit across states.Markets being shut down means they have no income and so they have been mobile vendors.  The Indian governmnet launched Rs.5000 crore special micro- credit facility for nearly 50 lakh vendors.  This credit linkage facility would provide an initial working capital of Rs. 10000.  Schneider and Enste(2003) estimate that the informal sector represents 10-20% of global output of developing countries.  The figures reported by the International Labour organisation are the same magnitude-48% in non-agricultural employment
  • 20. in North Africa,51% in Latin America,65% in Asia,and 72% in Sub-Saharan Africa.  The proportions of regular/wage salaried earners accounted for 12.81% of rural households.In urban India,the corresponding figures were 37.57%,12.68% and 41.66%
  • 21. Market dynamics during COVID-19 CHANGES IN MARKET LOCATION  New changes have been introduced by the governmnt regarding market place locations in order to abide by social- distancing measures.  Public places such as school playgrounds and parks had been converted into makeshift market places for vendors. CHANGES IN NUMBER OF VENDORS  The number of vendors had increased due to shift in occupations.Auto-rickshaw drivers and daily-wage labourers were selling fruits and vegetables in order to earn a living.
  • 22. SECURITY CONCERNS  Vendors were concerned that crime rates might increase as the sudden loss of money may drive people to commit petty crimes.
  • 23.
  • 24. ECONOMIC AND NON-ECONOMIC IMPACTS ECONOMIC IMPACTS  A world which buzzed with activities has fallen silent and all resources have been diverted to meeting the never- experienced befor crises.  A 2019 joint report from WHO and the World Bank estimated the impact of such a pandemic at 2.2% to 4.8% of global GDP.This prediction seems to have come true,as we see the world getting engulfed by this crisis.  According to the policy responses by the Individual Labour Organization(ILO),it was explained that the crisis had already transformed into an economic and labour market shock.
  • 25. NON ECONOMIC IMPACTS  Hygenic practices like washing of hands and proper cleaning are being followed by vendors as well as consumers.  It was well understood by the government that the informal/unorganised sector plays a significant role in the Indian economy.  Domestic abuse and harrasment reports increased during this time due to frustration about sources of livelihood.  Petty crimes such as stealing increased owing to uncertainty of livelihood for daily-wage/low-income labourers.
  • 26. CONCLUSION  According to International Labour Organisation(ILO),it is estimated that globally more than 25 million jobs are at risk due to the COVID-19 outbreak.  The ILO describes in its report as the worst global crisis since World War 2.It is estimated that 4 in evey 5 people(81%) of the global workforce of 3.3 billion are currently affected by lockdown in various countries.  Most of the world’s poorest and most vulnerable people live and work in the informal economy.
  • 27.  The vulnerability of informal workers is strongly influenced by their social status and their capabilities.  These capabilities are issues of public intervention in the fields of education,housing and sanitization.  Warranted by the magnitude of the current crisis,India has to ensure a wider reach of amenities to both impose living and protect livelihoods.