The COVID-19 pandemic severely impacted economies globally. Major countries reported negative GDPs as unemployment soared and GDP declined sharply in India. The natural way of life was disrupted with many losing jobs and livelihoods. While most sectors declined, agriculture grew. The government announced fiscal stimulus packages to rescue struggling industries, focusing on MSMEs. However, the measures were credit-centric rather than direct support and did not adequately cover all impacted sectors. More comprehensive and direct relief is still needed. The pandemic has leveled the global playing field and India has an opportunity to attract companies seeking alternatives to China. However, infrastructure development is needed to capitalize on this. Going forward, greater individual and collective preparedness is

1. GLOBAL MARKETING

2. Q1.) WHAT ARE THE MAJOR CHALLENGES FACED BY THE INDIAN
ECONOMY DUE TO COVID AND HOW IT AFFECTED OVERALL GROWTH?
• Unemployment soaring high at 26%. Loss of 14 crore jobs, mostly in unorganized sector.
• Remittances fell by 23%, FPIs withdrew a chunk of their investments from India, leaving
relatively scanty capital in India.
• GDP (Gross Domestic Product) fell by 23.9%, GVA (Gross Value Added) fell by 22.8%
• Sectoral impact:
• Service Sector – Industries such as aviation, tourism, transportation, hospitality and trade
contracted by 47%. Financial services contracted by 5.3%
• Manufacturing Sector – This sector faced an overall decline of 39.3%. No industry in this
sector left unscathed. Construction industry took the worst blow and declined by 50.3%.
• Agricultural Sector – The lone silver lining, the agricultural sector was the only sector that
recorded a positive GVA at 3.4%, more than the GVA of previous year.
• Other challenges:
• Erosion of trust between nations due to shift towards – Deglobalization.
• Weak demand at the national and international level exacerbated the situation.
• Little or no revenue generation but increased burden on the exchequer amidst welfare
activities increased the fiscal deficit greatly.

3. Q2.) WHAT KIND OF PREPARATIONS AND REFORMS ARE
REQUIRED TO GIVE MAXIMUM BENEFITS TO SMES AND OTHER
STRUGGLING INDUSTRIES OF THE REGION?
• Actual Reforms announced by the
government:
• Enhanced Fiscal Stimulus – The “Atma
Nirbhar Bharat” economic stimulus package
• Relief Package for MSMEs to the tune of 3.7
lakh crores by way of loans (quantitative)
and changing definition of MSMEs and
clearing their dues (qualitative)
• Nothing direct was given to the other
industries that had been affected the most
such as travel, tourism, hospitality etc, the
FINMIN promised financial stimulus to
those in the second tranche.
• Structural Reforms to revive 8 sectors such
as Commercial Coal Mining, Minerals
Mining, Civil Aviation, by way of privatising
these sectors to some extent.
• Suggestive Reforms:
• Encourage digitalization of MSMEs,
which could add upto US$ 158-216 bn
in the GDP, provide adequate
infrastructure, incentivize digitalization.
• Integration of MSMEs in the Global
Supply Chain offer them an opportunity
to embrace innovations and global best
practices. It will moreover allow for a
direct seepage of benefits to MSMEs.
• Tax Relaxations not only in the form of
reducing the tax rates, but reducing the
cumbersome tax formalities to ensure
rapid resuscitation.
• Taking appropriate measures to boost
demand to strengthen the economic
structure.

4. Q3.) HOW DID THE DYNAMICS OF THIS REGION CHANGE DURING
COVID-19 AND HOW WE CAME THROUGH, AND WHAT SHOULD BE
THE ACTION PLAN TO FACE SUCH SITUATIONS IN FUTURE?
• COVID has changed the very way we live, work and the meanings we hold about the world:
• WFH (Work From Home) rather than going at physical office.
• Deglobalization, rather than globalization.
• Businesses have transitioned rapidly to the electronic format, marking an end of the era of
brick and mortar business. Thus, the very business model experienced a change. Technology
has assumed a greater role. Perhaps, ‘online’ was the only business that flourished amidst
COVID.
• Education sector has, too, experienced a paradigm change with online learning/virtual
classes.
• Social life has been restricted to virtual meets through audio/video calls.
• Facing another pandemic in future:
• Are we ready or equipped? Perhaps no. No country, let alone India, was prepared for COVID.
• Measures to be ready, prepared and equipped for the next pandemic:
• Fiscal measures such as allocating more to the health sector, rather than defence (for India).
Legislations that guide the response to pandemic need to be made.
• Early warning and response, move in unison with the rest of the world to respond globally and
to address dangerous gaps, strengthening the capacity of countries to prepare and respond

5. Q4.) WHAT ARE YOUR SUGGESTIONS OR OPINION ABOUT THE
ACTION PLAN TO OPERATE IN COMPLETELY NEW SCENARIO UNDER
THE NEW GUIDELINES?
• Opinions of the announced action plan:
• the reforms announced by the government as a part of the fiscal stimulation package
are purely credit-centric, whereas more impetus needed to be given on direct economic
stimulation
• The part 1 of the action plan for revival of industries focused majorly on the MSMEs (6
out of 15 points), with little attention given to other major industries that took a serious
blow.
• Suggestions for the action plan:
• As all economies are shattered, there is a level playing field at the international level,
thus an opportunity in disguise for India to stimulate its industries and emerge as
global leader.
• With companies losing trust in China, they are looking to establish their operations in
India. This will result in a host of advantages to the Indian economy. The government
should provide sufficient infrastructure to such companies, to make hay while the sun
shines.
• The government should give direct inducements for proper revival of industries, in the

6. SUMMARY
No country was left unscathed from the vices of COVID-19. It had ill-effects on the economies,
with major countries reporting negative GDPs, as is evident from the cited stats. The natural way
of life was distorted, thousands rendered homeless, millions rendered jobless, GDP plummeted;
with no single entity to be held accountable. It forced a new normal unto us – with online
education, work from home, new social norms and what not. One paradox that surfaced is that
though the high contributing service sector and manufacturing sector declined, the agricultural
sector actually flourished.
As all the industries experienced a blow, the government announced a fiscal stimulation package
to resuscitate the dying industries. Although a good starting point, it had its inherent limitations –
being too credit centric, or focusing only on MSMEs etc. Thus, it was far from being
comprehensive. More direct stimuli is still called for.
Although we would have been better off without this menace, it still has offered many
opportunities in disguise. It has offered a level-playing field to all the countries. Thus, the
developing and least developed countries also have a chance to emerge as a global leader.
There is a clarion call at the global level to up the collective and individual preparedness to face
another such situation (some measures suggested). Who knows what’s in stock for us!

7. THANK YOU!