Sectors Affecting

1. INDIAN
ECONOMY
DURING
COVID 19
L. PRAKASH KANNAN, M.COM, M.PHIL,(Ph.D),/ASSISTANT PROFESSOR,
S. J. MONISHA, II B.COM,
PARVATHY’S ARTS AND SCIENCE COLLEGE,
DINDIGUL.

2. IMPACT OF COVID 19
• The economic impact of the 2020 conoravirus pandemic in India has been largely
disruptive. India’s growth in the fourth quarter of the fiscal year 2020 went down to
3.1% according to the Ministry of Statistics. The Chief Economic Adviser to the
Government of India said that this drop is mainly due to the coronavirus pandemic
effect on the Indian economy. Notably India had also been witnessing a pre-
pandemic slowdown, and according to the World Bank, the current pandemic has
“magnified pre-existing risks to India’s economic outlook”.

3. CHEMICALS AGENCIES
• Right after the outbreak of the virus, chemical manufactures are facing supply
chain interruptions and global travel restrictions in addition to quarantined
workforce. Majority of companies have either reduced production in the country or
temporarily shutdown their plants. According to Independent Chemical
Information Service (ICIS), demand for Chinese chemicals reduced by 15-20% as
companies exercised their own restrictions on travel to or from china.

4. SHIPPING INDUSTRY
• Shipping Industry: Coronavirus outbreak has impacted the business of cargo
movement service providers. As per the sources, per day per vessel has declined
by more than 75-80% in dry bulk trade.
• There have been complaints of shipment delays between India and China, there are
serious concerns regarding the overall earnings of Indian shipping companies in the
first quarter of 2020.

5. AUTO INDUSTRY
• The potent mix of demand slowdown, switchover to new emission norms
andCOVID-19 has pushed the Indian automotive market back by four to five years.
Many companies, especially small and medium enterprises, are worried about the
sale of their products ranging for USB ports to smartphones to TVs, ACs and
washing machines. Their fear is that since Covid-19 pandemic seems far from
being stabilised, there are chances that government might again have to resort to
stricter lockdown procedures, thereby impacting production and sales.

6. PHARMA
• The coronavirus outbreak has started to hit india’s pharmaceutical sector by rising
the prices of key ingredients. Now the prices for vitamins and penicillin are double
or triple the price. India’s manufacturers rely heavily on imports of their APIs from
china. As a result of the lockdowns and closures, slowed production of APIs
resulted in less availability and higher costs for the material required for generics
productions. Inter-state transport challenges is also an major issue. Due to the
lockdown, it has become difficult tot reach the retailers.

7. ELECTRONICS
• India’s electronics industry is fearing supply disruptions, production reduction,
impact on product prices due to heavy dependence on electronics component
supply-directly and indirectly-and local manufacturing. The spread of coronavirus
could have pushed down the sales of top electronic companies and smart phone
makers which have major supplies to India.

8. SOLAR POWER
• Ongoing Solar projects in the country have been halted and developers are
concerned about the delays their projects are facing because of the production
slowdown in China and the lockdown orders in India. With the solar industry relying
on China for around 80/5 of its requirement of solar supply, power companies were
facing disruption even before the Prime Minister announced a nation-wide lockdown
in the country. Imports of solar power equipment in January 2020 has declined by
about 70% as compared to January 2019.

9. INFORMATION TECHNOLOGY
• IT companies are heavily dependent on manpower and are not able to operate due
to restriction in movement of people arising from lockdown and quarantine issues.
Consequently, they are not able to complete or deliver the existing projects in time
and are also declining new projects.

10. TOURISM AND AVIATION
• The Indian tourism industry is projected to book a revenue loss of Rs. 1.25 trillion in
calendar 2020 as a fall out of the shutdown of hotels and suspension in flight
operations after the onset and spread of the coronavirus pandemic. A study by
CARE Rating notes that the figure corresponds to a 40 per cent decline in revenue
over calendar2019.

11. TEXTILES
• The textiles industry is the second largest employer after agriculture, providing
employment to over 45 million people directly and 60 million people indirectly. The
textile industry indirectly contributed around 5 percent to GDP. The sector
contributed around 14 per cent to the overall Index of Industrial Production (IIP).
Among the massive impact that coronavirus has had on the economies, fashion is
one of he hardest-hit industries. From manufacturing through to retail, the garment
industry employs close to 25 million people. If the current situation continues
beyond a month from now, nearly a quarter of the jobs in the industry will be lost,
according to the Clothing Manufacturers’ Association of India (CMAI).

12. CONCLUSION
• An outbreak of COVID-19 impacted the whole world and has been felt across
industries. The outbreak is declared as a national emergency by the World Health
Organization. In India the three major contributors to GDP namely private
consumption, investment and external trade will all get affected. World and Indian
economy are attempting to mitigate the health risks of COVID-19 with the economic
risks and necessary measures needed will be taken to improve it.

13. 1. STAY home
2. KEEP a safe
distance
3. WASH hands often
4. COVER your cough
5. SICK? Call the
helpline