The document summarizes the impact of the COVID-19 pandemic on various industries in India. Key sectors like construction, manufacturing, and real estate have ground to a halt due to lockdowns. Exports of textiles, fish and meat are impacted, while cement and oil producers face lower demand and prices respectively. The pandemic is also negatively impacting compensation and job prospects across most industries, with the exception of sectors like e-commerce, logistics, pharma and FMCG.
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A u t o m a ke r s , s m a r t p h o n e m a ke r s , c o n s u m e r
e l e c t r o n i c f i r m s , a p p l i a n c e m a j o r s a n d m a n y
o t h e r s h a v e o r d e r e d s h u t d o w n s t i l l m o n t h - e n d
Manufacturing grindstoa
haltinkeysectors
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Name
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EXPORT ORIENTED BUSINESSES
Textile
Con Exports will be hit asWest is badly affected.
PROS There can be shift of focus from China to India
Exports of fish and meat
CON Will remain impacted for a while.
PROS Will normalise as theVirus Scare goes away
Cement
CON Demand is shrunk with project sites locked-down
PROS Lower energy prices
Oil producers
Russia and Middle East, two largest producers and exporters of oil have increased production.
This has reduced the price of oil sharply.This is putting pressure on levered oil producers
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Construction
Over 30% construction workers have already stopped reporting to
work at sites due to fear of infection.
Across the country, around 18,000 projects are under construction
and are impacted by these developments.
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At this point, no property registrations are taking place and all
new project launches are postponed
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REALESTATE-RESIDENTIAL
"This is a time when AV technology to enable virtual
site visits and walk-throughs will gain increased
relevance and use,"
- Anuj Puri, Chairman , Anarock
"We too have begun to see a dip in traffic on all our
platforms,“
-Dhruv Agarwala, Group CEO, Housing.com and
PropTiger.com
“Complete lockdown means lesser sales since most of
the transaction closures happen only after site visits.
Housing prices have corrected by 15-20 per cent in
the last few years and further decline is unlikely,”
- Shalin Raina , MD- Residential Services, Cushman and
Wakefield
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"Housing sales may see a sharp dip for at least the next one quarter... Even if the situation settles down quickly,
it may take time for homebuyers to come back to the market,“ - Anurag Mathur, CEO Savills
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INDUSTRYSENTIMENT
“Shops and malls across India
are closed and demand too is
down. Hence the factory closure
will not impact business much,”
-Kamal Nandi, business head at
Godrej Appliances
“In an extreme case such as a
complete shutdown of all
factories by all industries for
one month, we estimate that
real manufacturing GVA would
fall by a sharp 5% in FY21”
-Sachchidanand Shukla, chief
economist, Mahindra Group
Pharma companies in panic
mode as lockdown hits supply
chain
11.
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Nomura economist Robert Subbaraman
“Indiahadafactorgoingforitwhichwaskeepingthescourgeat
bay.Indiadoesnothaveastronglinkswith Chinaintermsofvisitor
arrivalsandsoforthinsomeoftheseotherAsiancountriesbutalso
theeconomicspill-oversfromChinaontoIndiaarenotsevere.”
-Nomura economist Robert Subbaraman
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C O MPENSATIO N
• Consulting Firms including Big 4 defer promotions, appraisals, bonuses
and salaries amid virus crisis
• Construction dependent companies see their annual revenue erode by 8-
10% due to lockdown, salary cuts, deferred salary revisions and
promotions are being decided.
• In Financial Services : Insurance companies are little less impacted and
expect to continue with growth
• most of the banks are badly hit due to growing NPAs, and NPAs may
increase in number due to economic crunch
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JO B MARKET
• Consumer, retail and services sectors (travel, tourism, hospitality,
logistics) can shed ONE LAC JOBS
• Manufacturing, power, infrastructure, mining, agriculture and
construction will shrink by about 70,000 including unorganised
sectors
• E Logistics and E Commerce will continue to hire
• Pharma, FMCG and the telecom hiring will be up