3. INTOUDCTION
THE IMPACTS OF CORONAVIRUS ON INDIAN ECONOMY PANDEMIC INDIA HAS BEEN
LARGELY DISRUPTIVE IN TERMS OF ECONOMIC ACTIVITY AS WELL AS A LOSS OF
HUMAN LIVES. ALMOST ALL THE SECTORS HAVE BEEN ADVERSELY AFFECTED AS
DOMESTIC DEMAND AND SHARPLY PLUMMETED WITH SOME NOTABLE EXCEPTIONS
WHERE HIGH GROWTH WAS OBSERVED.AN ATTEMPT IS MADE TO ANALAYZE THE
IMPACT AND POSSIBLE SOLUTIONS FOR SOME KEY SECTORS.THEY ARE DIFFERENT
TYPES OF SECTORS ARE INVOLVED IN THESE INDIAN ECONOMY OF COVID-
19.EXAMPLE:FOOD AND AGRICULTURE ;GDP;MIGRATORY
LABOUR;INDUSTRY;PHARMACEUTICALS ETC..
4. FOODANDAGRICULTURE SECTOR
Agriculture is the backbone of the country and a part of
the government announced essential category, the
impact is likely to be low on both primary agricultural
productions and usage of agro –inputs.Several state
governments have already allowed free movement of
fruits,vegetables,milk etc….
Online food grocery platforms are heavily impacted due
to unclear restrictions on movements and stoppage of
logistics vehicles.
RBI and finance minister announced measures will help
the industry and the employees in the short term.
Insulating the rural food production areas in the coming
weeks will hold a great answer to macro impact of covid-
5. TOURISMSECTOR
-(INCLUDINGAVIATIONAND RAILWAYS)
Aviation and tourism were the first industries that were hit significantly by the
pandemic.
The common consencues seems to be that covid will hit these industries harder
than 9/11 and financial crises of 2008.
These two industries have been dealing with severe cash floe issues since the
start of the pandemic and are staring at a potential 38 millions lay-offs, which
translates to 70% of the work force.
The impact is going to fall on both ,white and blue collar jobs.
According to estimates ,these industries may incur losses of about 85 billion
rupees due to travel restrictions.
The pandemic has also brought about a wave of innovation in the fields of
contactless boarding and travel technologies.
6. TELECOMSECTOR
There has been a significant amount of changes in the telecom sector of india
even before the covid-19 due to brief price wars between the service providers.
Most essential services and sectors have continued to run during the pandemic
thanks to the implementation of the “work from home” due to restrictions.
With over i billion connections as of 2019,the telecom sector contributes about
6.5 %of GDP and employs almost 4 millions people.
Increased broadband usage had a direct impact and resulted in pressure on the
network.
Demand has been increased by about 10%.
However, the telco’s are the bracing for a sharp drop in adding new subscirbers.
As a policy recommendation , the government can aid the sector by relaxing the
regulatory compliances and provide moratorium for network expansions by the
companies
7. OILANDGAS
The Indian oil & gas industry is quite significance in the global
context – it is the third –largest energy consumer only behind USA
and chine and contributes to 5.2% of the global oil demand.
The complete slowed down the demand of transport fuels
(accounting for 2/3rd demand in oil & gas sector ) as auto &
industrial manufacturing declined and goods & passengers
movements (both bulk and personal) fell.
Though the crude prices dipped in this period ,the government
increased the excise and special excise duty to make up for the
revenue loss, additionally ,road cess was raised too.
As a policy recommendation , the government may think of
passing on the benefits of decreased crude prices to end consumers
at retail outlets to stimulate demand.
8. PHARMACEUTICAL SECTOR
The Pharmaceuticals industry has been on the rise since the start of the
covid-19 pandemic, especially in India , the largest producer of generic drugs
globally.
With a market size of $55billions during the beginning of 2020,it has been
surging in India, exporting hydroxychloroquine to the world, esp. To the(“USA
, UK ,Canada ,and the middle east”.
There has been a recent rise in the prices of raw materials imported from
china due to the pandemic.
Generic drugs are the most impact due to heavy reliance on imports,
disrupted supply-chain , and labour unavailability in the industry , caused by
social distancing.
Simultaneously ,the pharmaceutical industry is struggling because of the
government-imposed bans on the export of critical drugs, equipment ,and
PPE kits to ensure quantities for the country.
9. EDUCATIONSECTOR
The situation has prompted most of the governments to shut down all
educational institutions in the country to avoid mass gathering and follow
the guidelines of social distancing which according to the research is the
most 25 THE effective way to contain the spread of this disease spreading
virus.
The education sector of India is deeply uprooted with student- teacher
learning by means and ways of classroom interaction but the global
pandemic has forced both students and teachers to move to technology
based virtual learning.
The adaptation to this change in methodology of both teaching and
learning has posted a great challenge for the education sector.
Educators and students had experienced a ripple effect of the coronavirus
as universities and colleges were closed in the country.
The virus had a more severe consequence for the educational institutions
which did not have the support of online learning platforms.
10. IMPACTOF GDPGROWTHRATE
Impact on GDP growth rate while the COVID-19 pandemic is
constantly growing and showing little signs of containment as of 15
April 2020, its adverse impact on economic growth of the country
will probably be very serious.
The un warned that the coronavirus pandemic is expected to have a
significant adverse impact on global economy, and most significantly, GDP
growth of India
For the present economy is projected to decline to 4.8 per cent (united
nation 2020). Similarly, the UN ‘economic and social survey of Asia and the
pacific (ESCAP) 2020 reported that COVID-19 would have extensive socio-
economic consequences in the region with inundate activities across
borders in the areas of tourism, trade and financial linkages (united
nations, 2020).
11. MIGRATORYLABOURY
The international labour organization in its report describes the coronavirus
pandemic as ‘the worst global crisis since world war II’. About 400 million
people (76.2% of the total workforce) working in the informal economy in India
are at a risk of falling deeper into poverty due to catastrophic consequences of
the virus. As half of the world is in lockdown, it is going to be a loss of 195
million full-time jobs or 6.7 per cent of working hours globally.
Seasonal migration of labour for work is a pervasive reality in rural India. A
migration of millions of people happens from rural areas to industries, urban
markets and farms.
These migrant workers are employed in the construction sector (40 million),
domestic work (20 million), textile (11 million), brick kiln work (10 million),
transportation, mining and agriculture. During lockdown, 92.5 per cent of
labourers have lost 1 to 4 weeks of work.
12. CONCLUSION
Due to the lockdown, there suddenly was no work for many daily workers
i,e; urban poor and migrant labours ).
At the time of lockdown restrictions put a stop on movements of the buses
and trains . This leads to migrants more trouble.
The travel & tourism segment of the economy is also drastically hit in
some regions of the country where the major source of livelihood for
people is through travel and tourism services.
Due to covid-19 of pharmaceuticals challenges faced in account of
raising prices of drugs ,lack supply of pharmaceuticals ingredients from
China.
The situation is not easy, and too early to truly get a decent sense of what
impact would be.
The situation is unpredictable to take close to a year to show any indication
of growth.
