Indian and Whole world is in the horror of COVID-19, which made the economy of this whole world stand on its knees. Before the COVID-19 outbreak Indian economy was at its lowest, several industries were facing financial losses. This becomes worse with the virus outbreak which results in the entire nation lockdown.
Covid-19 has become a serious threat to the global economy
Past three decades Indian economy has seen the lowest economic downgrade after the 1990’s liberalization. India is facing the worst recession after its independence, due to coronavirus lockdown. Around 15 crore people lost their employment due to this lockdown. The ruling party in Indian promised in their manifesto that by the end of 2024 India will have a 5 trillion dollar economy.
We have witnessed low in GDP, high unemployment rate, high inflation. Major companies in India have shut down operations in their different sectors. Daily wages workers are affected the most, they are staying at home due to the lockdown resulting in daily food problems for them. After the lockdown extended for more and these migrant labor did not get any support from the state as well as from the central government, most of them decided to reach their native place by walking thousands of kilometers.
Before the lockdown, several sectors were already in pain, due to less demand for the product and the services also with some uncleared government policies. Sectors that are major contributors to Indian GDP are either partially or completely out of the action. Coronavirus quickened the crisis and ended those sectors who have just started running at a good pace. In this article, we will explore the top 5 Indian industries bearing the burn due to the COVID-19 outbreak. Not only these 5 sectors, but other sectors also required urgent help.
⇒ Indian GDP falls to 5%
⇒ 15 Crore job loss
MSME (Micro, Small and Medium Enterprises) is the backbone of Indian economy. Manufacturing and exporting sectors are the 2 key derivatives of MSME. With the lockdown and the social distancing, most of the factories are closed and there is no manufacturing going on them. They are now facing increasing debts, bills, GST fillings, etc.
The MSME sector mainly relies on China for the raw material. After the corona outbreak, the export and import from China were banned in late January 2020. Due to the lockdown and the financial crunch around 25% of MSME is at the point of closure.
Most of the countries are under lockdown even the states are also in the lockdown. Coronavirus spread across the countries due to infected people traveling to different countries. It becomes a serious problem for the airlines and their ecosystem. There is a huge fall in the demand for international as well and domestic flights. Resulting in the airline industry slashing in salary and job losses. Aviation sector job losses continue to mount due to the coronavirus crisis.
According to the estimate, the aviation sector has sunk to 66 percent.
Tourism and Hospitality
Indian tourism and hospitality sector is the first to get impacted due to the coronavirus crisis and it will be the last sector to get resumption in the activities. The tourism and hospitality sector loses 3.2 crores of jobs. It will take more time for people to take their services, people in the future will think twice about going to the tourist place and take hospitality services.
Once all gets over, it will be the government’s responsibility to build trust in people so that this industry will revive at the earliest.
Before the lockdown, textile and automobile industries in India were its lowest. The coronavirus outbreak led to a stop in production and sales. Most big automobile industries cut the jobs, waiting for the resumption of the dealership. It also affects the industries associated with it like parts manufacturers, local dealers, etc. People are staying at home that means there will be fewer vehicles on the road and the demand for new vehicles is negligible. The future of the automobile industry is dark, people will recover their financial losses and will spend on the essential things rather than spending on luxurious things.
Housing sales fall to around 30% due to the coronavirus crisis. The sale and purchase of residential and commercial properties have gone into the dark. With the financial crisis, people are getting sort of money, for them it will be impossible to think of purchasing residential property as of now.
The majority of companies rely on the “work from home”, and that will be the major factor in the decline of commercial properties.
In most parts of India, construction work is stopped due to the lockdown, forcing the migrant laborers who work on a daily basis to move forwards towards their hometown.
The year 2020 is very worst for the Indian economy, most of the industry is seeing a downfall. They are looking for a relief package from the government of India. Finance minister on May 17, 2020, announced 20 lakh crore relief packages for the different industries. We all hope this situation will get over soon and we get relief from corona as well as from the devil of an economic crash.