The spread of the new coronavirus is a public health crisis that could

acti ona s e r i o u s r i s k t o t h e m a c r o e c o n o m y t h r o u g h t h e s t o p o f
p r o d u c ti o n a c ti v i ti e s o b s t a c l e o f    people’s movement and cut-
off of supply chain. Coronavirus (COVID-19) outbreak isdisrupting world trade
and could result in a 50-billion-dollar decrease in exports across globalvalue
chains. The trade impact of the coronavirus epidemic for India is
esti mated to be about3 4 8 m i l l i o n d o l l a r s a n d t h e c o u n t r y fi g u r e s
a m o n g t h e t o p 1 5 e c o n o m i e s m o s t aff e c t e d a s slowdown of
manufacturing in China disrupts world trade.
C o r o n a v i r u s h a s   d is r u p t e d   t h e d e m an d
a n d   s u p p l y   c h a in   a c r o s s   t h e c o u n t r y an d w i t h t h is d i s r u p ti o n i t
c a n b e s e e n t h a t t h e t o u r i s m , h o s p i t a l i t y , an d a v i a ti o n s e c t o r s
a r e am o n g t h e w o r s t a ff e c t e d s e c t o r s t h a t ar e f a c i n g t h e
m a x i m u m i m p a c t o f t h e current crisis.

The corona virus outbreak ensured

that the Year of the Rat didn’t get off to the most propiti ous start.
Over 2000 people dead somore than 80000 infected and 40+
countries aff ected. Citi es in lockdown, travel restricti onsin place,
plant closures mounti ng. Global trade, commerce, tourism,
investment and supplychains in disarray. the slowdown of manufacturing in
China due to the coronavirus (COVID-1 9 ) o u t b r e a k is d i s r u p ti n g w o r ld
t r a d e a n d c o u ld r e s u l t in a 5 0- b i l l i o n - d o l l a r d e cr e a s e i n exports
across global value chains. The most aff ected sectors include
precision instruments,machinery, automotive and communication
equipment etc.

The Organization for Economic Co-operation and Development’s(OECD)recent

report expects the outbreak of the coronavirus (COVID-19) to create a
severeimpact on China and global economy.“Restrictions on movement of
people, goods and services, and containment measures such asfactory closures
have cut manufacturing and domestic demand sharply in China,” the
OECDsaid. “The impact on the rest of the world through business travel and
tourism, supply chains,commodities and lower confidence is growing.”In the
best-case scenario, a slowdown in world growth is expected in the  first
half of 2020 assupply chains and commodities are hit, tourism
decreases and confidence fades. The reporta n t i c i p a t e s g l o b a l
e c o n o m i c gr o w t h t o f a l l 2 . 4% f or t h e w h o l e y e a r c o m p ar e d t o
2 . 9 % i n 2019, while a rise to 3.3% in 2021 is expected.The OECD revised
China’s growth to below 5% in 2020 compared to 6.1% in 2019.But if
COVID-19 continues to spread similarly as it did in China, it could
decrease globalgrowth as low as 1.5%, the OECD noted.

In the early days of the outbreak, the media, medical experts and health
professionals werereferring to "the coronavirus" as a catch-all term to discuss
the outbreak of illness. But acoronavirus is a
type
of virus as we explain in the section above, rather than a disease itself.To
alleviate the confusion and streamline reporting, WHO has named the new
disease COVID-19(for corona virusdisease 2019)

"Having a name matters to prevent the use of other namesthat can be inaccurate
or stigmatizing," said Tedros Adhanom Ghebreyesus, director-generalof the
WHO. "It also gives us a standard format to use for any future coronavirus
outbreaks."

Objectives of the Research

 

 
To analyze the Indian economic impact of the outbreak.

 
To study future Opportunities of Indian Service and Manufacturing Sectors for
global pandemic disease.

 
To study the stock market crisis.

 
To work out the growing challenges faced by Indian economy.

 
To study the declining growth of different Indian industries and consumer
demand.

 
To study about how much overall impact on economy and government relief to
saveeconomy.

 
To study on future growth of Indian GDP with COVID-19 outbreak

LITERATURE REVIEW OF COVID-19

The review of literature paves way for clear understanding of the area of
research alreadyundertaken and throws a light potential area which are yet to be
covered. In this regard anattempt has been made to make a brief survey of the
work under-taken on the field of EconomicImpact on Indian Economy. To
review some of the important studies are presented below suchas.

 
Arun M kumar chairmen and CEO of kpmg in India (1 Apr 2020)
 As our new financialyear commences, the novel coronavirus has infected more
than thirty millions people in195 countries. A scourge confronting all of being
that of us have largely taken for granted.

 
Multazim M Pathan Medical Research Scientist, (25 Feb 2020)
, The study is cumulativeof the recent literature released by the Central
Government of India DHR and ICMR, theChinese scientists handling the
samples and Interim measures on controlling the 2019n-Corona virus by World
Health Organization and American National Institute of Health.
 

 
Li et al (25 march 2020)
, How do predict development of outbreak early? To predict thedevelopment of
this outbreak as early and as reliably as possible. Peak interest for
thesekeywords in Internet search engines and social media data was 10
 – 
14 days earlier than theincidence peak of COVID-19 published by the NHC.

 
Anzai et al., Japan, Assessing the Impact of Reduced Travel on Exportation
Dynamicsof Novel Coronavirus Infection COVID-19 (24 FEB 2020)
Comparative genetic analysisof the novel coronavirus (2019-nCoV/SARS-CoV-
2) receptor ACE2 in different populations. Depending on the scenario, the
estimated delay may be less than one day. Asthe delay is small, the decision to
control travel volume through restrictions on freedom ofmovement should be
balanced between the resulting estimated epidemiological impact and predicted
economic fallout.

Quilty et al., UK, (6 FEB 2020),

Effectiveness of airport screening at detecting travellersinfected with novel
coronavirus (2019-nCoV). Airport screening is unlikely to detect asufficient
proportion of 2019-nCoV infected travellers to avoid entry of infected
travellers.

 
Sunil Kumar (4 Apr 2020),
Agricultural Extension, Agronomy and Economic impact onIndian economy
and sectorial impact of out break.

 
Anbesh Jamwal, Sumedha Bhatnagar, Prakarti Sharma (
12 April 2020)
,
There is a greatslowdown in the global economy due to COVID-19 attack
which is likely to costs around$1 trillion. The spread of COVID-19 infection
can be reduced by minimizing the H-Htransmissions.

 
Ministry of Health and Family Welfare Government of India, Novel
CoronavirusDisease 2019
, Containment Plan for Large Outbreaks.
4
TOURISM

Perhaps the most visible and immediate impact of Covid-19 is seen in the hotel
and tourism sector in all its geographicalsegments - inbound, outbound and
domestic and almost all verticals - leisure, adventure, heritage, MICE, cruise
andcorporate. Given various travel restrictions imposed by the Indian
Government as well as Governments across the globe,forward bookings for
various conferences and leisure travel bookings to foreign destinations have
already been cancelled.In India, most of the summer holiday bookings have
been cancelled (about 40-50% most of which was to states of Kerala, Rajasthan
and Goa) impacting the domestic tourism. The impact on the inbound and
outbound passengers is expected tobe most severe in the next couple of
quarters.
 
India’s total foreign tourist arrivals (FTA) stood at 10.9 millio
n and the foreign exchange earnings (FEE) stood at Rs 210,971crore during
2019 with Maharashtra, Tamil Nadu, Uttar Pradesh and Delhi accounting for
about 60% of FTAs. However,now with travel restrictions in India for over 80
countries and most of the flights of major airlines being suspended ALONG
with lockdown in states of India till March 31, 2020, the Indian domestic as
well as foreign travel and tourism industry isexpected to witness a sharp
negative impact in 2020.Assuming the impact to be about 50% during January
and February 2020, while the impact being higher at about 70%during March
2020 post the suspension of international flights and about 100% during Q2
2020 (April
 –
 June 2020) on theoverall foreign travellers with travel advisories being put out,
the Indian tourism industry is expected to book revenues ofRs 69,400 crore
during H1 2020, a y-o-y loss of over 30% during the period. During H2 2020,
assuming the virus impactsubsides, we expect FTAs to still be lower affecting
the FEEs by about 50% to reach Rs 56,150 crore vis-à-vis Rs 112,300crore
during H2 2019.
 Therefore, for the year 2020, the industry is expected to book a revenue loss of Rs
125,550 crore,loss of over 40% y-o-y.

5
he outbreak of Corona virus has seriously affected businesses across the globe
whichare operating in fear of an impending collapse of global financial markets.
The impact ofthis situation will be longstanding causing collapse of some while
generating newopportunities of others. The world will see major disruptions in
how businesses willoperate in future taking into consideration the negative
effects of globalization andoverdependency of global value chains on few
countries like China.Looking at the exponential growth of COVID-19 all over
the world and foreseeing suchimpact on India’s densely populated 1.3
billion people India took timely decisions to firstrestrict travel and eventually
the country went into complete lockdown on March 25,2020, the largest and
harshest in the world, restricting 1.3 billion people. While thelockdown, now
extended till May 17, 2020 (54 days) has helped the country to mitigatethe
overwhelming growth of the virus, it has shaken the economy leading to
majorslowdown.Sectors like travel & tourism, hospitality, automobiles, finance
and real estate andprofessional services are estimated to be hardest hit by the
coronavirus (COVID-19)epidemic in India between April and June 2020
compared to the same period in 2019.Comparatively, sectors like pharma and IT
are in a better position

 
.