1.

80,000 jobs to be lost in the Retail sector, a report by Retailers Association Of

India

Retailers may lay off 80,000 employees due to losses suffered in the
national lockdown against the coronavirus, said a survey on Tuesday. The survey was
conducted among 768 retailers, which employ 3,92,963 people across India, to gauge
their view on the impact of coronavirus.

"Small retailers are expecting to lay-off 30 per cent of their manpower going forward,
this number falls to 12 per cent for medium (sized) retailers and 5 per cent for large
retailers. On the whole, retailers who responded to the survey expect layoff of about 20
per cent of their manpower," said the Retailers Association of India in their report.

The retailers are requesting for additional 60 days for payment of electricity charges and
waiver of minimum demand charge for the same period with one out of ten retailers
considering this as a key ask from the government to manage finances in this period of
uncertainty

On the business outlook, 70 per cent of retailers expect business recovery to happen in
more than six months, while 20 per cent expect it to take more than a year.

A big chunk of retailers’ expenditure is manpower costs but SMEs themselves are not
able to function. They don’t have money to pay even salaries,” Kumar Rajagopalan,
CEO, Retailers Association of India told Financial Express Online. India’s retail industry
has over 15 million retailers employing 40-50 million people including over 6 million
employed under modern retail stores.

https://www.business-standard.com/article/economy-policy/around-80-000-jobs-
expected-to-be-cut-due-to-coronavirus-lockdown-report-120040701400_1.html

2. STARTUPS, UNICORNS GOING FOR BIG LAYOFFS

Indian Startups lay off; furlough and some go for pay cuts across the board. Here are a
list of at least 15 decently big unicorns that are taking this route during corona crisis

This tracker shows how more than 20 firms have cut on their manpower costs

https://inc42.com/buzz/startupsvscovid19-indian-startup-layoffs-pay-cut-tracker/
3. CEOs across sectors forgo salaries to keep their businesses afloat
 Vijay Shekhar Sharma, Paytm
Paytm founder and chief Vijay Shekhar Sharma has said that he will not draw a
salary for the next two months to help those employees impacted by the pandemic.

 Deep Kalra and Rajesh Magow, MakeMyTrip

Online travel aggregator MakeMyTrip (MMT) founder and executive chairman
Deep Kalra and CEO Rajesh Magow shared a revival plan with the company’s
employees. MakeMyTrip is also planning to undertake multiple tough measures to
minimise the overall expenses. The company is also reducing the costs on
employee front as well and to set an example both Kalra and Magow are not
taking any salaries effective April 2020.

 Bhavish Aggarwal, Ola

Bengaluru-headquartered cab aggregator Ola said that Bhavish Aggarwal,
cofounder and CEO will forgo a year’s salary. The company set up a Drive the
Driver Fund to offer relief to the driver community. 

 Ritesh Agarwal, OYO

Gurugram-headquartered hospitality unicorn OYO has announced founder and
group CEO Ritesh Agarwal has foregone his salary for the year. 

 Ritesh Malik, Innov8

Inspired by Sharma’s tweet, Innov8 founder Ritesh Malik also tweeted that he will
be buying masks, hand sanitizers and testing kits from his salary to support ground
staff at Innov8, OYO workflow.

 Sriharsha Majety, Swiggy

Online food delivery platform Swiggy said that its cofounder and CEO, Sriharsha
Majety, has decided to give up on 50% of his annual salary to contribute towards a
relief fund for delivery partners.

 Aloke Bajpai and Rajnish Kumar, ixigo

Travel aggregator ixigo also announced that the founders have foregone their
salary till the travel business gains stability while ensuring no employee is laid-off.
  Vivekananda Hallekere, Arun G, and Varun Agni; Bounce
Bengaluru-based scooter rental startup announced an organisation-wide,
temporary salary deduction to tide over the current uncertainty. The three
founders, Vivekananda Hallekere, Varun Agni and Anil Giriraj announced a 100%
pay cut in their salary; while the rest of staff have agreed to forgo 20-60% of their
compensation.

 Jitendra Chouksey, FITTR

Pune-based fitness platform FITTR founder Jitendra Chouksey is taking no salary
until the crisis is over. 

 Ronojoy Dutta, CEO Indigo

CEO Ronojoy Dutta is taking a 25% pay cut.

List of Global CEOs:

Airlines

 Delta (DAL) CEO Ed Bastian: “As I mentioned last week, I've cut my own salary
by 100 percent through the next six months. Our Board of Directors elected to
forego their compensation over the next six months as well.”
 Alaska Air (ALK) CEO Brad Tilden cutting base salary to zero.
 United (UAL) CEO Oscar Munoz and President Scott Kirby “will forego their
base salary at least through June 2020.”
 Southwest (LUV) CEO Gary Kelly taking a 10% pay cut. 
 JetBlue (JBLU) CEO Robin Hayes is taking a 20% pay cut. 
 Allegiant (ALGT) CEO Maurice Gallagher and President John Redmond take full
pay cut.
 Spirit (SAVE) CEO Edward Christie is taking a pay cut.
 British Airways (IAG) CEO Willie Walsh is taking a 25% pay cut.

Transportation

 Lyft (LYFT) co-founders John Zimmer and Logan Green pledged to donate their
salaries through June.
  Fiat Chrysler (FCAU) CEO Mike Manley has halved his salary for three months
and chair John Elkann has cut his entire base compensation until year end.

Hospitality

 Marriott (MAR) CEO Arne Sorenson has joined the airlines in taking a pay cut, as
the hotel industry revenues have been slammed as well. “I will not be taking any
salary for the balance of 2020 and my executive team will be taking a 50% cut in
pay,” Sorenson said.
 Wyndham Hotels & Resorts (WH) CEO Geoff Ballotti has dropped his base
compensation to zero

https://inc42.com/buzz/startups-covid19-indian-founders-ceos-sacrifice-pay-to-save-the-
business/

https://in.finance.yahoo.com/news/heres-a-list-of-ce-os-taking-pay-cuts-amidst-the-
coronavirus-crisis-171206258.html

4. India's curve steeper than Asian peers

When taken a 7 day rolling average, Day 0 for each country corresponds to the day the
100th covid-19 confirmed case was recorded as on 8th April (graph in the article)

New infections and deaths rising faster in India than many other countries

https://www.livemint.com/news/india/india-s-corona-curve-still-steep-
11586461242911.html

5. INDIA GDP PROJECTIONS IN FURTHER JEOPARDY

Moody’s and Fitch Ratings

In January, Fitch Ratings said India would recover in 2020-21 at a GDP growth rate
of 5.6 per cent which it cut down to a 30-year-low of 2 per cent in the first week of
April.

On Thursday, Fitch Ratings revised its expectations and projected a 0.8 per cent GDP
growth rate for 2020-21. Likewise, Moody’s ratings are also less hopeful. In January,
they projected a 5.8 per cent growth rate for FY21, and by the end of March, they cut it
down to 2.5 per cent.

https://www.indiatoday.in/diu/story/coronavirus-indian-economy-1670487-2020-04-24

6. Barclays says Indian economy to lose Rs 17.78 lakh crore; cuts GDP growth
to zero
With Prime Minister Narendra Modi extending the nationwide lockdown to May
3, foreign brokerage Barclays has cut India's calendar year (CY) 2020
GDP forecast to zero per cent from 2.5 per cent earlier and 0.8 per cent for the
financial year 2020/21 from 3.5 per cent earlier.
https://www.businesstoday.in/current/economy-politics/coronavirus-barclays-cuts-india-2020-gdp-
forecast-to-zero-over-lockdown-extension/story/400973.html

7. SONIA GANDHI WRITES TO PM MODI: SEEK ECONOMIC PACAGE FOR

REVIVAL OF MSMEs

 In a letter to Modi, Gandhi also made some suggestions for the revival of the
Micro, Small and Medium Enterprises (MSME), which is reeling under the
adverse impact of the coronavirus lockdown
 She urged the prime minister to announce a Rs 1 lakh crore "MSME Wage
Protection" package as also a credit guarantee fund of an equivalent amount,
besides a 24X7 helpline for helping them out of this crisis.
 While highlighting the crisis, she said MSME sector is suffering around Rs 30,000
crore loss every day due to the lockdown and efforts should be made to help revive
them as they are the backbone of the economy.

https://www.moneycontrol.com/news/india/sonia-gandhi-writes-to-pm-modi-seeks-economic-
package-for-revival-of-msmes-5189721.html

8. AIRLINES WILL SEE A BOOD BATH

INDIA

 Airlines in India are likely to suffer a revenue loss of 11.2 billion dollars this year
leading to 2.9 million jobs at risk as passenger demand falls by 47 per cent due to
COVID-19 crisis
 On April 14, IATA released an updated analysis showing that the COVID-19
crisis will see global airline passenger revenues drop by 314 billion dollars in
2020, a 55 per cent decline compared to 2019.

ASIA PACIFIC
 Airlines in the Asia Pacific will see the largest revenue drop of 113 billion dollars
in 2020 compared to 2019 (minus 88 billion dollars in March 24 estimate) and a
50 per cent fall in passenger demand compared to 2019 (minus 37 per cent in 24
March estimate).
 Every airline job supports another 24 in the travel and tourism value chain. In the
Asia Pacific, 11.2 million jobs are at risk, including those that are dependent on
the aviation industry such as travel and tourism
 Overall, 90 per cent collapse in air traffic puts around 6.7 million jobs at risk and
could lead to a negative GDP impact of 452 billion dollars across Europe.
 This equates to an additional 1.1 million jobs and 74 billion dollars in GDP over
the March estimates of 5.6 million jobs and 378 billion dollars

UNITED KINGDOM:

 140 million fewer passengers resulting in a 26.1 billion dollars revenue loss,
risking almost 661,200 jobs and around 50.3 billion dollars in contribution to the
UK economy.

SPAIN
 114 million fewer passengers resulting in a 15.5 billion dollars revenue loss,
risking 901,300 jobs and 59.4 billion in contribution to Spain's economy.

GERMANY
 103 million fewer passengers resulting in a 17.9 billion dollars revenue loss,
risking 483,600 jobs and 34 billion in contribution to Germany's economy.

ITALY
 83 million fewer passengers resulting in an 11.5 billion revenue loss, risking
310,400 jobs and 21.1 billion in contribution to Italy's economy.

FRANCE
 80 million fewer passengers resulting in a 14.3 billion revenue loss, risking
392,500 jobs and 35.2 billion in contribution to France's economy.
https://wap.business-standard.com/article/economy-policy/indian-airlines-to-suffer-11-2-bn-
revenue-loss-2-9-mn-jobs-at-risk-iata-120042400741_1.html

9. Industry body Ficci and tax consultancy Dhruva advisors recent report:

(Responses taken from about 380 companies across the sectors) 

Survey Says-

 70% expecting degrowth sales for FY20-21

 About Approved Expansion Plans- 61% Expect to postpone it for 6-12months
while 33% expect to postpone it for more than 12months
 Fund Raising plans- 60% postpone the plan for 6-12 months
 About Exports- 43% said can’t predict where as 34% expects more than 10% fall
 As per Dun & Bradstreet- The revised Gross Domestic Product (GDP) estimates
for India downwards by 0.2 percentage points for the fiscal year 2020 to 4.8 per
cent and by 0.5 per cent for the fiscal year 2021 to 6 per cent. 
 The data of the Dun & Bradstreet shows that at least 6,606 Indian entities have
legal linkages with companies in countries with a large number of confirmed
COVID-19 cases.

10. India’s dependence on China

 India’s total electronic imports account for 45% of China.
 Around one-third of machinery India imported are from China
 Almost two-fifths of organic chemicals that India purchases from the world come
from China
 For automotive parts and fertilizers China’s share in India’s import is more than
25%.
 Around 65 to 70% of active pharmaceutical ingredients and around 90% of
certain mobile phones come from China to India.
 In China, about 72% of Indian companies are located in cities like Shanghai,
Beijing, provinces of Guangdong, Jiangsu, and Shandong. In various sectors, these
companies work including Industrial manufacturing, manufacturing services, IT
and BPO, Logistics, Chemicals, Airlines, and tourism.
Sector-wise impact on Indian Economy-

 Chemical Industry: 20% of the production has been impacted due to the

disruption in raw material supply as some chemical plants have been shut down in
China. China is a major supplier of Indigo that is required for denim.
 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.
 Textile Industry – Several garments & Textile factories in China have halted their
operations which in turn effecting Indian Fabric export and other raw material
export
 IT Industry: The New Year holidays in China has been extended due to
coronavirus outbreak that adversely impacted the revenue and growth of Indian IT
companies.
 Tourism and Aviation: Due to the coronavirus outbreak, the inflow of tourists
from China and from other East Asian regions to India will lose that will impact
the tourism sector and revenue.

Compiled by Jagran Josh- https://www.jagranjosh.com/general-knowledge/what-is-the-

impact-of-coronavirus-on-indian-economy-1582870052-1

11. 1.5 crore job loss in Exports- Quote of SK Saraf, President FIEO

 "With the cancellation of over 50 percent of orders and a gloomy forecast for the
future, we expect 1.5 crore job losses in exports and rising non-performing assets
amongst exporting units, hitting the economy very badly," Saraf said. He added
that sectors including apparel, gems, and jewellery, leather, handicrafts,
engineering and textiles are severely hit by the lockdown. We are losing markets

“We are losing markets to China. All orders are going to China as they have
resumed work. It will be very late if we will not start our factories now. Small
economies like Bangladesh and Sri Lanka to have announced relief packages.”

12. CMIE Latest figures

  Telephonic interviews caught pace in the week ended April 5. We had 9,429
observations. These yielded an unemployment rate of 23.4 per cent during this
week; an LPR of 36 per cent and an employment rate of 27.7 per cent.
 Now, the third week of April shows a further deterioration. The unemployment
rate has inched up a good 219 basis points over the earlier week’s 24 per cent to
26.2 per cent. This is plausible. A prolonged lockdown can only worsen labour
market conditions.
 The labour participation rate has similarly fallen further from 35.5 per cent to 35.4
per cent and, the employment rate has now fallen to 26.1 per cent compared to 27
per cent in the earlier week.
 The employment rate has fallen from 40 per cent in February to 26 per cent now.
This is steep fall of 14 percentage points. This implies that 14 per cent of the
working age population has lost employment. The working age population is of
the order of a billion. This implies that of the order of 140 million or 14 crore
people have lost employment in the lockdown. This is unprecedented.

Quote:

Nirmal Jain, IIFl said in an interview:-Thirty crore people in India live on subsistence
income, i.e. a few steps away from hunger. About 14 crore people are internal migrants,
who live in inhospitable conditions in cities, having escaped the creepy disease called
‘hunger’ in their villages. The corona lockdown has already pushed them to edge. The
real war for India is not corona, but the aftermath.

Read more at:

https://economictimes.indiatimes.com/markets/stocks/news/the-real-war-for-india-will-begin-after-the-
corona-crisis-gets-over/articleshow/75247603.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst