IMPACT OF COVID-19 ON BUSINESS

BY, PRAJWAL V J
INTRODUCTION
 From march 24th to may 18th, lockdown was there for most of the businesses. Now 90% of businesses are running, even
though businesses are not as regular as before.
 Number of +ve covid cases are increasing daily all over the country and slowly it is occupying green zones also. It feels
like, till now we just watched trailer.
 In this scenario, it is expected that India’s GDP will decline by 12.5%.

 Several experts and scientists have said that the virus is going to be part of our lives for a long time.

 The crisis has taught us the importance of local manufacturing, local market and local supply chains.

 Prime Minister announced a special economic package and gave a clarion call for Atmanirbhar Bharat.

 Prime Minister remarked that self-reliance will prepare the country for tough competition in the global supply chain, and
it is important that the country wins
IMPACT ON HOSPITALITY INDUSTRY

 Covid 19 made severe impact on hospitality industry too.

 This industry has several segments such as tourism and travels, hotels, bars and restaurants, amusement parks, lodging,
etc.
 Long term impact on this industry.

 Indirectly the impact will be felt by the businesses who are depended on tourism.

 Many business are expected to cut down their travel and accomodation costs for their employees.

 Both foreign and domestic tours are expected to remain very low for next couple of years
IMPACT ON SOCIAL GATHERINGS

 Since this pandemic is spreading from person to person who are in close contact with each other. The only way to prevent
this pandemic is by social distancing. So for long term, people has to maintain social distancing.
 As a result of this, temples will not allow devotees for darshan as regular. Fairs, tournaments, political and other
campaigns, wedding ceremonies and other functions will not happen for longer period.
 Even in markets and other shops, distance has to be maintained.

 Indirectly this has impact towards lot of people who are depended on these things to run, some of those who are affected
by these segments are catering services, event management service, photoshoots, small business people who are
depended on fairs, etc
 Electricity demand has been significantly reduced by 20% as a result of lockdown measures. Demand fell for all other
sources of electricity, including coal, gas and nuclear power.
IMPACT ON ELECTRONICS

 Electronics industry also suffered from covid 19, this will also be for long
term.
 Since lot of components used for manufacturing are to be imported, there
will be supply problems right now
 Research and development was largely unaffected and actually became more
efficient, hardware testing and validation in labs is impacted, and that there
won’t be any rush to go back to offices once people are allowed to go out
again.
 IMPACT ON AUTOMOTIVE
 Covid 19 made high impact on automotive industry as well for long term.

 Demand for cars is likely to drop.

 Demand for commercial vehicles will dependent on growth in GMP.

 Supply is seen disrupted which may create production problems too.

 In my view, there is possibility of increase in sales of 2 wheelers.

IMPACT ON EDUCATION
 On 16 March, India declared a countrywide lock-down of schools and colleges

 Here some schools and colleges have already adopted online platforms for teaching. This pandemic forced the transformation from
conventional classrooms to digital.
 With the help of power supply, digital skills of teachers and students, internet connectivity it is necessary to explore digital learning, high and
low technology solutions, etc.
 The necessity to explore digital learning platforms.

 The lockdown has generated uncertainty over the exam cycle. May be universities may face impact in terms of a slowdown in student
internships and placements, lower fee collection that can create hurdles in managing the working capital.
POSITIVE IMPACTS

 Global manufacturers have initiated talks with Indian firms to explore the possibility of shifting a part of their supply
chains from China as they seek to diversify their operations following the COVID-19 outbreak.
 India imports about $135 billion worth of crude oil and petroleum gases every year, the largest share of nearly $500
billion annual import bill. Arguably, given the lockdown on transportation and sharp decline in the oil price itself, this
will cut by a third this year - saving some $45 billion for the economy in 2020-21.
 A lot of supply chain was coming from China and today some of the large original equipment makers(OEMs), will
migrate to countries like India, Vietnam and others. That will be a growth opportunity and we will see a migratory growth
in supply chain.
 A large number of countries have already started thinking in terms of shifting their investments out of China.

 Fortunately, thanks to the Green Revolution, today we have enough food in the market and in government godowns.
Thank you